36 unchanged sentences
Results of Operations
−Removed: During the years ended December 31, 2023 and 2022, the Trust's net comprehensive income (loss) was, in part, impacted by market volatility resulting from the US banking sector turmoil, ambiguity around the Federal Reserve's tightening cycle, and rising geopolitical concerns from the conflict in the Middle East, for 2023, and uncertainty caused by the novel coronavirus known as COVID-19, as well as the Russia-Ukraine conflict, for 2022, which are considered to be unusual or infrequent events.
−Removed: Although the full and direct impact of the COVID-19 pandemic, the Russia-Ukraine conflict, the US banking sector turmoil, and the Israel-Gaza conflict on the Trust's net comprehensive income (loss) during the years ended December 31, 2023 and 2022 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.
+Added: During the years ended December 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.
+Added: 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 years ended December 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.
+Added: The Australian dollar (AUD/USD) performed negatively in 2024, with fourth quarter losses wiping out all earlier gains.
+Added: In the first quarter, US dollar moves drove the bulk of the price action, though escalated geopolitical tensions also pressured investors’ risk appetite;
+Added: the Aussie is considered a risky currency.
+Added: 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.
+Added: 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.
+Added: 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.
+Added: However, a soaring greenback to end the year, driven by President Trump’s victory, drove the pair into deep negative territory.
+Added: Many of the president’s campaigned policies were expected to raise inflation risk, potentially leading to higher rates in 2025.
+Added: In addition, tariffs generally weigh on foreign currencies, further boosting the USD.
The Australian dollar (AUD/USD) ended 2023 flat.
3 unchanged sentences
Like many other currencies, however, the fourth quarter marked significant gains due to US dollar weakness – unlike the Fed, which was expected to shift to rate cuts, the RBA had left open the door for further rate hikes, providing a further boost for its currency.
−Removed: For 2022, despite being the best performing G10 currency in the first quarter, supported by massive gains across the commodities complex following Russia’s invasion of Ukraine, the Australian Dollar (AUD/USD) failed to keep its positive performance through the second and third quarter, succumbing to recession-fears driven dollar strength and the sharp commodities selloff (especially in the third quarter).
−Removed: The AUD is seen as a “commodity currency” given the country is a net energy exporter and commodities account for a large share of the country’s exports.
−Removed: The fund did, however, gain significantly to end the year as the US dollar retreated and the selloff in commodities came to a halt.
−Removed: 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.
−Removed: 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.
+Added: Additionally, the interest rate paid by the Depository has generally remained flat over the past year with the current interest rate of 1.92%, as set forth in the FXA Rate Chart above.
+Added: As long as the interest income, if any, exceeds the Sponsor's fee and the interest expense on currency deposits, the Trust will incur a net comprehensive income.
Critical Accounting Estimates
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.