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For Australia, even the recently announced RBA rate cut and the Federal budget’s promise of a 25% corporate tax rate may not be enough to help the market hold on to yesterday’s gains. The US dollar also broke its six session losing streak overnight, gaining 0.4% in the DXY dollar index and 0.7% in the Bloomberg dollar index. The US dollar has dropped to some of its lowest levels seen since January 2015, but two Fed speakers came out last night and were very keen to talk up the possibility of rate hikes in June. While a Fed rate hike in June seems unlikely, it is perfectly sensible for them to talk up the possibility to prepare markets for a potential rate hike in 3Q.