AUD/USD has rallied 23 pips and last sits....>

AUSSIE: AUD/USD has rallied 23 pips and last sits at $0.6950 as RBA Governor

Lowe questioned the effectiveness of further monetary policy easing. Lowe also

pointed to a difficult international environment, where most major central banks

are expected to cut rates, while downside risks remain tilted to the downside.

- Lowe noted that the exchange rate can be a powerful channel through which

monetary policy can affect the economy, but its potential is limited when

everyone else is easing.

- Moreover, Lowe called upon the government to use record low interest rates to

boost fiscal and infrastructure spending.

- Worth noting that the Governor refrained from signalling the RBA's readiness

to trim its cash rate - something he did last week when he said that it would

not be "unrealistic" to expect another cut, which prompted some RBA watchers to

front-load their easing forecasts.

- A familiar technical picture remains intact, with bulls targeting the

50-DMA/upper 1.0% 10-DMA envelope at $0.6975/78.