AUD Surge Puts Pressure on Wool Buyers with Higher Costs and Lower Sales

The Australian dollar's recent rise has put pressure on wool buyers by increasing the cost of AUD-denominated wool purchases.

Despite a low wool offering, which had maintained buyer interest in recent weeks, the 1.2% gain in the AUD/USD exchange rate to 0.722¢ pushed the Eastern Market Indicator (EMI) down 12¢ to 1878¢ in AUD terms.

However, the EMI finished 8¢ higher in USD terms at 1357¢.

The bale offering decreased by 6% to 23,486, with a pass-in rate of 10%. A total of 21,147 bales were sold, representing a 33% decline from the average over the past year.

Looking at local market indicators, Sydney was down 13¢ to 1948¢, Melbourne dipped by 11¢ to 1831¢, and Fremantle rose by 6¢ to 2084¢.