Invesco CurrencyShares Australian Dollar Trust
For the period ended Sep 30, 2024. Filed Nov 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.
Sep 30, 2024 · Filed Nov 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 2024-06-30; filed 2024-08-07.
0000950170-24-092101
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0000950170-24-122614
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 27 previous paragraphs and 27 current paragraphs.
22 unchanged; 3 reworded; 2 added; 2 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 (2)
Current report
The Australian dollar (AUD/USD) experienced positive performance in the third quarter of 2024, mostly gaining on US dollar weakness. The Federal Reserve (Fed) finally kicked off its easing cycle while the Reserve Bank of Australia (RBA) kept rates steady as it still battled with a tight labor market and sticky inflation. However, the downturn in commodities and the overhang from the Chinese economic lull have been persisting headwinds for the Aussie, since China is their largest export partner. The significant risk off move at the end of July also dealt a heavy blow to the riskier currency, with investors instead turning to safe haven currencies like the Swiss franc.
Current report
The Australian dollar (AUD/USD) ended the third quarter of 2023 lower, pressured by renewed US dollar strength. Like the Fed, which has stuck to its higher-for-longer rhetoric, the Reserve Bank of Australia (RBA) has kept its rates steady, leaving open the possibility of further inflation fighting hikes if needed. Additionally, commodities are a big driver of the Aussie and have been able to limit some of the downside this quarter, especially in September when energy commodities experienced a significant rebound following Saudi and Russian supply cuts. In other news, China is Australia’s biggest trading partner, and its subdued recovery could have added to the downward pressure earlier in the quarter.
Removed paragraphs (2)
Previous 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.
Previous 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.)
Reworded paragraphs (3)
Previous 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.
Current wording
During the three and nine months ended September 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 (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 and nine months ended September 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 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.
Current wording
The Australian dollar (AUD/USD) ended the first three quarters of 2024 positive. In the first quarter, US dollar moves drove the bulk of the price action, though escalated geopolitical tensions also pressured investors’ risk appetite; the Aussie is considered a risky currency. The Fed’s higher-for-longer rhetoric and stickier-than-expected US inflation pushed out expectations for US rate cuts, providing support for the US dollar. However, the pair did rebound significantly in the second and third quarter – strong domestic retail sales in the second quarter raised bets that the RBA could hike rates while many global central banks had already kicked off their easing cycles. In the third quarter, the pair gained on US dollar weakness as the Fed began cutting rates, though the persisting downtrend in commodities and China pessimism capped the upside for the Aussie.
Previous wording
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.
Current wording
The Australian dollar (AUD/USD) posted slight positive performance in the first three quarters of 2023, gaining in the first quarter and second quarter but falling in the third quarter on renewed US dollar strength. 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, pressured by macro concerns and China’s disappointing 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. While commodities prices finally started to rebound in the third quarter, renewed dollar strength stole the show, pushing the AUD lower.