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The Australian dollar is higher against the US dollar on Monday.

The Aussie is being rewarded for the success in Australia at containing the virus, and the potential that offers for fully reopening the economy earlier than many other countries.

The greenback was down on Monday as markets trade with an optimistic tone, reducing the need for a haven.

Australian dollar to US dollar was higher by 68 pips (+1.06%) to 0.6452 as of 6pm GMT.

AUD/USD rallied to its highest since March 12 above 0.645. Last week the exchange rate gained +0.17%.

AUD: Australia reports no COVID-19 deaths in two days

It was reported that 2 million Australian downloaded the COVIDSafe contact tracing app as the country prepares to ease lockdown restrictions.

Australians appear to be embracing the new technology in the hopes of quickly returning to work and ending social distancing rules.

With almost all major countries facing a recession and interest rates cut to zero in the past month, its uncharacteristic that the AUD, as currency typically associated with higher rates and higher growth, is rising.  In fact it is close to erasing the entire March rout. Part of the explanation likely comes from  markets rewarding Australia for its successful response to the virus. Total deaths from COVID-19 in Australia stand at 83 and there have been none in the past two days.

USD: Dollar drops as Trump questions state bailouts

A little less unity in US politics over the next bailout package may have contributed to some of the dollar weakness. “Why should the people and taxpayers of America be bailing out poorly run states (like Illinois, as example) and cities, in all cases Democrat run and managed, when most of the other states are not looking for bailout help?” US President Donald Trump tweeted on Monday.

Traders in the United States have half an eye on a busy upcoming week of US economic data including  US GDP figures and the Federal Reserve monetary policy meeting. The US economy is expected to have declined in size by -4.3% in the first quarter of 2020.