Wool Market Up in AU Terms - Little Movement in US Dollars

April 29, 2016

There was a sharp reversal in the Australian wool market this week as the exchange rate continued to play havoc with AU pricing. The benchmark Australian Wool Exchange Eastern Market Indicator gathered 24 cents for the week, recovering all of its losses from the last sale. The Aussie dollar also changed tack, falling almost 2 cents during the week and making its biggest one-day fall in 8 months. The currency slump came amid negative inflation data and Australian interest rate speculation.

In U.S. terms, the EMI has barely moved in the past two weeks despite the turbulence in Australian terms.

Merino fleece types lifted fairly equally each sale day, resulting in gains of 40 to 50 cents clean for most microns. There was initially a strong start at the beginning of the week and improving momentum continued to carry the market higher through Wednesday and into Thursday.