Invesco CurrencyShares Australian Dollar Trust
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
FXA$67.95-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0000950170-24-054961
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000950170-24-092101
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 25 previous paragraphs and 27 current paragraphs.
21 unchanged; 3 reworded; 3 added; 1 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 1 previous and 1 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
The Australian Dollar (AUD/USD) experienced positive performance in the second quarter of 2024, even despite gains in the US Dollar. Strong Australian retail sales data in May further fueled inflation fears, raising bets for a potential rate hike; Australian inflation had come in above forecasts three months in a row. In comparison, several global central banks had already started their easing cycles, leaving further rate hikes out of the picture. Higher interest rates tend to boost the country’s currency. The US dollar continued to gain with Fed rate cut expectations further delayed.
Current report
The Australian Dollar (AUD/USD) ended the second quarter of 2023 lower than the previous quarter. While fluctuating through both April and May, the pair trended lower in May pressured by the sharp drop in commodities prices caused by the US banking sector turmoil and debt ceiling default fears, and China’s slow economic recovery. The US dollar also moved higher in May, weighing on the pair, as the Fed reiterated the potential for additional rate hikes before year end. As commodity prices rebounded in early June, so did the AUD, but that trend reversed to end the month on weaker fundamentals, driving commodity prices lower. (The AUD is known as a commodity currency – commodities account for a large share of the country’s exports – meaning changes in commodity prices will influence the currency value.)
Current report
The Australian Dollar (AUD/USD) posted slight negative performance in the first half of 2023. In the first quarter, despite its strong January rally as Australian inflation surged to a 33-year high, raising prospects for more aggressive rate hikes from the Reserve Bank of Australia (RBA), and the US dollar weakened, the AUD flipped into losses through the rest of the quarter on the plunge in commodities. Broad commodities have continued to trend lower through the second quarter of 2023, pressured by macro concerns and China’s slow economic recovery, while the USD has remained somewhat supported, as the market awaited more clarity on the Fed’s rate hike path forward, both generally bearish for the AUD.
Removed paragraphs (1)
Previous report
The Australian Dollar (AUD/USD) ended the first quarter of 2023 slightly lower. Despite its strong rally in January as Australian inflation surged to a 33-year high, raising prospects for more aggressive rate hikes from the Reserve Bank of Australia (“RBA”), and the USD weakened, the Australian Dollar flipped into losses through the rest of the quarter. The USD rebounded in February following resilient labor market data and stickier-than-expected inflation in the US, reversing speculation that the Fed will take a softer stance on rate hikes. The “commodity currency” (given commodities account for a large share of the country’s exports) was further pressured by the downturn in commodities caused by the slower-than-expected rebound in China and as mentioned, renewed “hawkish Fed” bets. The pair did gain a bit in the second half of March on renewed weakness in the USD, though it wasn’t enough to shift the fund into positive territory.
Reworded paragraphs (3)
Previous wording
During the three months ended March 31, 2024 and 2023, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for 2024, and the US banking sector turmoil for 2023 which are considered to be unusual or infrequent events. Although the full and direct impact of Fed easing expectations, rising geopolitical tensions, and the US banking sector turmoil on the Trust’s net comprehensive income (loss) during the three months ended March 31, 2024 and 2023 cannot be known, it is believed that they have each independently impacted the Closing Spot Rate, the interest rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.
Current wording
During the three and six months ended June 30, 2024 and 2023, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from expectations around the Federal Reserve (Fed) easing and heightened geopolitical concerns for 2024, and the US banking sector turmoil for 2023, which are considered to be unusual or infrequent events. Although the full and direct impact of Fed easing expectations, rising geopolitical tensions, and the US banking sector turmoil, on the Trust’s net comprehensive income (loss) during the three and six months ended June 30, 2024 and 2023 cannot be known, it is believed that they have each independently impacted the Closing Spot Rate, the interest rate paid by the Depository, and the global economy and markets generally, including the number of Shares created and redeemed by the Trust.
Previous wording
The Australian Dollar (AUD/USD) ended the first quarter of 2024 lower with price action largely driven by moves in the USD, but also risk-off moves due to escalated geopolitical tensions – the Australian Dollar is generally considered a riskier currency while the USD is seen as more of a safe haven. The Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for US rate cuts and higher rates generally provide support for the country’s currency. US economic resilience also boosted demand for the USD. Specific to the Australian Dollar, the sluggish recovery in China served as a headwind given the country is Australia’s largest export partner.
Current wording
The Australian Dollar (AUD/USD) ended the first half of 2024 lower than the previous quarter. In the first quarter, US Dollar moves drove the bulk of the price action, though escalated geopolitical tensions also pressured investors’ risk appetite – the AUD is generally considered a riskier currency compared to the haven USD. The Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for US rate cuts. Specific to the AUD, the sluggish recovery in China also served as a headwind given the country is Australia’s largest export partner. However, the pair did rebound significantly in the second quarter as strong Australian retail sales raised bets that the Reserve Bank of Australia (RBA) could hike rates. In contrast, many global central banks had already kicked off their easing cycles.
Previous wording
Additionally, the interest rate paid by the Depository has generally trended upward over the past year from zero, to the current interest rate of 1.92%, as set forth in the FXA Rate Chart above. As long as the interest income, if any, exceed the Sponsor's fee and the interest expense on currency deposits, the Trust will incur a net comprehensive income.
Current wording
Additionally, the interest rate paid by the Depository has generally trended upward over the past year, to the current interest rate of 1.92%, as set forth in the FXA Rate Chart above. As long as the interest income, if any, exceed the Sponsor's fee and the interest expense on currency deposits, the Trust will incur a net comprehensive income.