That left the currency flat at $0.7860, from a top of $0.8007, having shed 1.2% late on Thursday. It also wiped out the week's gains and put pressure on support around $0.7820.
In New Zealand markets, a run of strong economic data and a housing boom have seen a move to price in rate hikes from the Reserve Bank of New Zealand (RBNZ) as early as 2022.
The central bank left its cash rate at a record low 0.1%, but surprised by extending its bond-buying scheme by another A$100 billion ($76.01 billion) from mid-April.
Across the Tasman, the Kiwi dollar was trading 0.39% higher at $0.7218, after the jobless rate dropped unexpectedly to 4.9% from 5.3%, dampening prospects for further central bank rate cuts.
The kiwi dollar held firm at $0.7173, after finding support at $0.7150. It remains far from the January top of $0.7314 and has resistance at $0.7225 and $0.7246.
Lowe, who will give a speech in Canberra on Wednesday, said a near term issue was how households and businesses adjust to the fiscal tapering and to what extent they use their balance sheet to support spending.