# AUD Slumps After RBA’s Dovish Rate Cut, Slightly Recovers on Bullock Comments - Babypips.com

> The RBA cut its cash rate by 25 basis points to 3.85%, and its statement and projections were more dovish than expected. The GDP forecast for 2025 was lowered to 2.1%, and markets now expect about 85 basis points of further cuts by mid-2026.

- Date: 2025-05-21 · published 2025-05-21T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/24957-aud-slumps-after-rba-s-dovish-rate-cut-slightly-recovers-on-bullock-comments
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

Expected rate cuts weaken the AUD, which can reduce the cost of Australian grain and barley for export buyers. The effect on feed prices is limited.

## Read by commodity

- AUDUSD: bearish ▼

## Sources

- babypips.com: https://www.babypips.com/news/headline-aud-slumps-after-rbas-dovish-rate-cut-slightly-recovers-on-bullock-comments-2025-05-21

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.