• AUD/USD regains positive traction and climbs back closer to a multi-week top touched on Friday.
• The RBA’s hawkish stance and a positive risk tone turn out to be key factors benefiting the Aussie. 
• China’s economic woes could act as a headwind ahead of the US inflation figures later this week.

The AUD/USD pair catches fresh bids during the early part of the European session and climbs back closer to a two-and-half-week top touched on Friday. Spot prices currently trade around the 0.6600 round-figure mark, with bulls looking to build on the momentum beyond the technically significant 200-day Simple Moving Average (SMA).

The Australian Dollar (AUD) continues to draw support from the Reserve Bank of Australia's (RBA) stance, showing readiness to hike interest rates further to combat still sticky inflation. In fact, RBA Governor Michele Bullock last week emphasized the need to stay vigilant about inflation risks and said that the central bank will not hesitate to tighten monetary policy again if needed. This, along with a generally positive tone around the equity markets, turns out to be another factor benefiting the risk-sensitive Aussie.