At 07:00 (AEST), the Australian dollar was buying 69.63 U.S. cents, up from 69.32 U.S. cents on Monday.
The local currency continued to benefit from weakness in the greenback, but it was Lowe's speech which helped the Aussie dollar reach new strengths.
Lowe said that the federal government should borrow while interest rates were at record lows to fund infrastructure projects.
"If the government can build productive capacity by borrowing at low interest rates, it seems like that is a good thing to do," Lowe said.
"Governments here and around the world should have their top drawers full of really good ideas that are shovel-ready in case growth slows." At 09:30 (AEST), the local unit was buying 69.66 U.S. cents.
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