Always On read-intent
My understanding is that, with the Readable Secondary option set to Yes on both replicas, any connection string with applicationIntent=ReadOnly will route to Node1


No it should first go to node 2 because the Node 2 is read only replica and Node 1 is primary replica which will server to read write operations. As per BOL


  Read-only routing refers to the ability of SQL Server to route qualifying read-only connection requests to an available Always On readable secondary replica (that is, a replica that is configured to allow read-only workloads when running under the secondary role)


What is output of 

SELECT ag.name as "Availability Group", ar.replica_server_name as "When 
  Primary Replica Is",
rl.routing_priority as "Routing Priority", 
ar2.replica_server_name as "RO Routed To", 
ar.secondary_role_allow_connections_desc, 
ar2.read_only_routing_url
FROM sys.availability_read_only_routing_lists rl
inner join sys.availability_replicas ar on rl.replica_id = ar.replica_id
inner join sys.availability_replicas ar2 on rl.read_only_replica_id = ar2.replica_id
inner join sys.availability_groups ag on ar.group_id = ag.group_id
ORDER BY ag.name, ar.replica_server_name, rl.routing_priority


So from output you can see when Node 1 is primary replica read only connections will go to Node 2 as first preference and vice versa