"However, the number of employed people who worked zero hours in early January in the capital cities also reflects some ongoing effects of recent lockdowns in Sydney and Melbourne," Jarvis noted.
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 resurgence in the property market supports household balance sheets and encourages spending through positive wealth effects, Lowe said, noting higher prices can also encourage further residential construction.
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.
"But policymakers may become unnerved by skyrocketing mortgage debt and a potential building boom at a time when population growth is slowing sharply."
The S&P/ASX 200 index was up 1.1% at 6,725.70 by 2350 GMT, its best session since Jan. 19, after ending about 2% lower on Thursday. But it was on track to rise 1.7% in January, its fourth straight monthly gain.
Three-year bond yields at 0.12% remain pinned near the RBA's target of 0.10%, while commercial bank balances at the central bank have ballooned to over A$139 billion as it keeps the system flush with cash.
International borders remain shut, however, while small virus outbreaks in parts of the country from time to time has led to an uneven and bumpy economic recovery.
Job vacancies, retail sales, home building and house prices have all indicated a brisk recovery is underway, seemingly lessening the need for more monetary stimulus.
The Australian Office of Financial Management (AOFM) is due to outline its latest borrowing plans on Friday, which could include a syndication of new bond lines.
The news took a toll on safe haven bonds with Australian 10-year futures falling 6 ticks to 98.9600, implying a yield of 1.04% and back toward a recent low at 98.9200.
NAB's Strickland noted that news on the virus has been encouraging with community transmission cases falling to eight on Tuesday from 15 on Monday and 30 the day before.
Adding to the tide of stimulus, the Reserve Bank of Australia (RBA) has slashed interest rates to near zero and launched a A$100 billion bond-buying program, saying creating jobs was a "national priority."