What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-03-02 compared with 2025-02-26 · 27 added, 16 removed, 43 unchanged (50% of the section changed)

24 unchanged sentences

The Sponsor is not aware of any known trends, demands, commitments, events or uncertainties that will result in, or are reasonably likely to result in, material changes to the Trust’s liquidity and capital resources needs.

The Trust’s Depository, JPMorgan Chase Bank, N.A., London Branch, maintains two deposit accounts for the Trust, a primary deposit account that may earn interest and a secondary deposit account that does not earn interest.

The Trust’s Depository, JPMorgan Chase Bank, N.A., London Branch, primarily maintains two deposit accounts for the Trust, a primary deposit account that may earn interest and a secondary deposit account that does not earn interest.

Interest on the primary deposit account, if any, accrues daily and is paid monthly.

9 unchanged sentences

Results of Operations

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.

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.

During the years ended December 31, 2025 and 2024, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility resulting from global tariff gyrations, mounting U.S.

economic uncertainty for 2025, evolving expectations around the Federal Reserve (the “Fed”) monetary policy and heightened geopolitical concerns, some of which are considered to be unusual or infrequent events.

Although the full and direct impact of these conditions on the Trust’s net comprehensive income (loss) during the years ended December 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.

The Australian dollar (AUD/USD) posted strong gains in 2025, supported primarily by broad U.S.

dollar weakness.

The currency experienced bouts of volatility—particularly in April—due to its close ties to commodity markets, as tariff uncertainty and softer global demand weighed on Australia’s export‑driven economy.

These pressures were offset in the second quarter by rising energy prices amid escalating geopolitical tensions, as well as improvements in global risk appetite and a temporary easing of U.S.–China trade tensions in the third quarter.

Rate cuts by the Reserve Bank of Australia introduced some downside pressure;

however, their impact was largely contained by the Bank’s cautious communication and guidance toward a gradual easing trajectory, especially in contrast to expectations for more aggressive U.S.

The fourth quarter further supported the AUD, as renewed geopolitical tensions boosted sentiment in oil markets, providing the currency with additional momentum heading into year‑end.

The Australian dollar (AUD/USD) performed negatively in 2024, with fourth quarter losses wiping out all earlier gains.

In the first quarter, US dollar moves drove the bulk of the price action, though escalated geopolitical tensions also pressured investors’ risk appetite;

first quarter, U.S.

dollar moves drove the bulk of the price action, though escalated geopolitical tensions also pressured investors’ risk

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.

However, a soaring greenback to end the year, driven by President Trump’s victory, drove the pair into deep negative territory.

Many of the president’s campaigned policies were expected to raise inflation risk, potentially leading to higher rates in 2025.

In addition, tariffs generally weigh on foreign currencies, further boosting the USD.

The Australian dollar (AUD/USD) ended 2023 flat.

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.

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.

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.

The Fed’s higher-for-longer rhetoric and stickier-than-expected U.S.

pushed out expectations for U.S.

rate cuts, providing support for the U.S.

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 U.S.

dollar weakness as the Fed

began cutting rates, though the persisting downtrend in commodities and China pessimism capped the upside for the Aussie.

a soaring greenback to end the year, driven by President Trump’s victory, drove the pair into deep negative territory.

president’s campaigned policies were expected to raise inflation risk, potentially leading to higher rates in 2025.

In addition, tariffs

generally weigh on foreign currencies, further boosting the USD.

Additionally, the interest rate paid by the Depository has generally trended downward over the past year to current interest rate of 1.32%, as set forth in the FXA Rate Chart above.

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.

4 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.

What changed 10-K

Item 7. Management’s Discussion and Analysis