The research note had an impact on markets with the Australian dollar pegged lower across the board, with AUD/USD retreating from intraday highs above 0.69 while AUD/JPY edged back toward the lows of the week. The Australia two-year yield fell 2bps to below 1.39%, while interest rate markets are now pricing in an 88% probability of a rate cut in June. The odds for an August cut have risen to just below 50% from about 30% at the start of the week.
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