7 unchanged sentences
These factors include fluctuations in the price of the Australian Dollar, as the value of the Shares relates directly to the value of the Australian Dollars held by the Trust and price fluctuations could materially adversely affect an investment in the Shares.
−Removed: Readers are urged to review the “Risk Factors” section contained in the Trust’s most recent annual report on Form 10-K for a description of other risks and uncertainties that may affect an investment in the Shares.
+Added: Readers are urged to review the “Risk Factors” section contained in the Trust’s most recent Annual Report on Form 10-K, together with the modified risk factor included in Item 1A of this report, for a description of other risks and uncertainties that may affect an investment in the Shares.
Neither Invesco Specialized Products, LLC (the “Sponsor”) nor any other person assumes responsibility for the accuracy or completeness of forward-looking statements contained in this report.
36 unchanged sentences
Interest on the primary deposit account, if any, accrues daily and is paid monthly.
−Removed: The interest rate in effect as of September 30, 2024 was an annual nominal rate of 1.92%.
−Removed: The following chart provides the daily rate paid by the Depository since September 30, 2019:
+Added: The interest rate in effect as of March 31, 2025 was an annual nominal rate of 1.72%.
+Added: The following chart provides the daily rate paid by the Depository since March 31, 2020:
In exchange for a fee, the Sponsor bears most of the expenses incurred by the Trust.
10 unchanged sentences
These estimates and assumptions affect the Trust’s application of accounting policies.
−Removed: In addition, please refer to Note 3 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussions and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates on Form 10-K for the year ended December 31, 2023.
+Added: In addition, please refer to Note 3 to the financial statements of the Trust for further discussion of the Trust’s accounting policies and Item 7 – Management’s Discussions and Analysis of Financial Condition and Results of Operations – Critical Accounting Estimates included in the Trust's Annual Report on Form 10-K for the year ended December 31, 2024.
Results of Operations
−Removed: 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.
−Removed: 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.
−Removed: The Australian dollar (AUD/USD) experienced positive performance in the third quarter of 2024, mostly gaining on US dollar weakness.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: The Australian dollar (AUD/USD) ended the third quarter of 2023 lower, pressured by renewed US dollar strength.
−Removed: 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.
−Removed: 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.
−Removed: 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: The Australian dollar (AUD/USD) ended the first three quarters of 2024 positive.
−Removed: In the first quarter, US dollar moves drove the bulk of the price action, though escalated geopolitical tensions also pressured investors’ risk appetite;
−Removed: the Aussie is considered a risky currency.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: 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.
−Removed: While commodities prices finally started to rebound in the third quarter, renewed dollar strength stole the show, pushing the AUD lower.
−Removed: 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.
+Added: During the three months ended March 31, 2025 and 2024, the Trust's net comprehensive income (loss) was, in part, impacted by market volatility resulting from global tariff gyrations and mounting US recession concerns for 2025, and expectations around the Federal Reserve (the “Fed”) easing and heightened geopolitical concerns for 2024, which are considered to be unusual or infrequent events.
+Added: Although the full and direct impact of global tariffs, US recession concerns, Fed easing expectations and rising geopolitical tensions, on the Trust's net comprehensive income (loss) during the three months ended March 31, 2025 and 2024, 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) ended the first quarter of 2025 close to flat despite significant US dollar (USD) weakness.
+Added: This was partially due to global tariff uncertainty reducing risk appetite, as the AUD is generally seen as a riskier currency, but also the intensifying trade war between US and China.
+Added: China is Australia’s largest export partner, so any headwinds to the Chinese economy, will likely also have negative cascading effects.
+Added: The downturn in commodities also exerted downward pressure since Australia has an export-oriented economy.
+Added: The Australian Dollar (AUD/USD) ended the first quarter of 2024 lower with price action largely driven by moves in the USD, and by risk-off moves due to escalated geopolitical tensions – the Australian Dollar is generally considered a riskier currency while the USD is traditionally seen as a safe haven.
+Added: The Federal Reserve'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.
+Added: US economic resilience also boosted demand for the USD.
+Added: Specific to the Australian Dollar, the sluggish recovery in China served as a headwind given the country is Australia’s largest export partner.
+Added: Additionally, the interest rate paid by the Depository has generally trended downward over the past year with the current interest rate of 1.72%, 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.
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.