AUD/JPY jumps to 200-hour MA as RBA's Lowe questions efficacy of further easing

• RBA's Lowe questions the efficacy of easy monetary policy. 
• AUD/JPY jumps to 200-hour moving average hurdle. 
• Lowe also voices global growth concerns. 

The bid tone around the Australian Dollar strengthened, pushing the AUD/JPY cross higher to the 20-hour moving average (MA) of 74.64 after the Reserve Bank of Australian Governor Lowe questioned the efficacy of further monetary easing. 

Lowe said the accomodative monetary policy would not work if everyone is easing, offsetting the positive effect of weaker exchange rates. Lowe's comments come at a time when the markets are priced in for 50 basis point rate cut before the year-end. The central bank cut rates by 25 basis points to a record low of 1.25% earlier this month. 

Also, other major central banks have turned dovish over the last few weeks. Notably, the European Central Bank President Draghi said last week that more rate cuts could be delivered if required and the US Federal Reserve removed the word "patience" from its forward guidance, setting the stage for a rate cut later this year. 

While Lowe's comments on easing are AUD-positive, the gains could be capped around the 200-hour MA of 74.64 on growth concerns. Lowe acknowledged global growth risks in his speech today and called for increased infrastructure spending by the Australian government. 

Further, tensions between the US and Iran and the ongoing US-China trade war could keep the gains under check. 

Pivot levels