46 unchanged sentences
Interest on the primary deposit account, if any, accrues daily and is paid monthly.
−Removed: The interest rate in effect as of June 30, 2022 was an annual nominal rate of 0.00%.
−Removed: The following chart provides the daily rate paid by the Depository since June 30, 2017:
+Added: The interest rate in effect as of September 30, 2022 was an annual nominal rate of 0.40%.
+Added: The following chart provides the daily rate paid by the Depository since September 30, 2017:
In exchange for a fee, the Sponsor bears most of the expenses incurred by the Trust.
2 unchanged sentences
When the interest deposited, if any, exceeds the sum of the Sponsor’s fee for the prior month plus other Trust expenses, if any, the Trustee converts the excess into USD at the prevailing market rate and distributes the USD as promptly as practicable to Shareholders on a pro-rata basis (in accordance with the number of Shares that they own).
−Removed: The Trust did not make any distributions during the quarter ended June 30, 2022.
+Added: The Trust did not make any distributions during the quarter ended September 30, 2022.
Critical Accounting Estimates
4 unchanged sentences
Results of Operations
−Removed: During the three and six months ended June 30, 2022 and 2021, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility and uncertainty caused by the novel coronavirus known as COVID-19, which is considered to be an unusual or infrequent event.
−Removed: Additionally, the Trust’s net comprehensive income (loss) during the three and six months ended June 30, 2022 was, in part, impacted by the Russia-Ukraine conflict, which is also considered to be an unusual or infrequent event.
−Removed: Although the full and direct impact of COVID-19 and the Russia-Ukraine conflict on the Trust’s net comprehensive income (loss) during the three and six months ended June 30, 2022 and 2021 cannot be known, it is believed that COVID-19 and the Russia-Ukraine conflict 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) posted negative performance in the second quarter of the year, weighed down by a strengthening U.S.
−Removed: dollar and the sell off in commodities, both triggered by growing recession fears.
−Removed: With Australia being a net energy
−Removed: exporter and commodities accounting for a large share of the country’s exports, lower goods prices dent demand for the “commodity currency.” Though the currency pair did rally a bit in May as the Reserve Bank of Australia (RBA) opened its doors to higher interest rates, the gains were wiped out as commodities went into freefall to end the quarter.
−Removed: The Australian Dollar (AUD/USD) performed negatively in the second quarter of 2021.
−Removed: Despite rallying initially as the U.S.
−Removed: dollar weakened and rising commodities prices supported the “commodity currency,” the currency pair fell sharply to end the quarter as the USD spiked with the resurgence of COVID-19 concerns.
−Removed: Commodities also sold off, dealing an additional blow to the pair.
−Removed: Despite being the best performing G10 currency in Q1, 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, succumbing to recession-fears driven dollar strength and commodities sell off.
−Removed: The Australian Dollar (AUD/USD) performed negatively in the first half of 2021.
−Removed: In Q1, the U.S.
−Removed: dollar rebounded on strong U.S.
−Removed: economic recovery and rising treasury yields while persistent market volatility reduced investor demand for the perceived riskier Aussie.
−Removed: Then in Q2, despite rallying a bit on a weakening USD and strengthening commodities prices, resurging COVID-19 concerns led to a spike in the USD and a commodities sell off, pushing returns back into negative territory.
−Removed: Additionally, the interest rate paid by the Depository has generally trended downward over the past several years to the current interest rate of 0.00%, as set forth in the FXA Rate Chart above.
+Added: During the three and nine months ended September 30, 2022 and 2021, the Trust’s net comprehensive income (loss) was, in part, impacted by market volatility and uncertainty caused by the novel coronavirus known as COVID-19, which is considered to be an unusual or infrequent event.
+Added: Additionally, the Trust’s net comprehensive income (loss) during the three and nine months ended September 30, 2022 was, in part, impacted by the Russia-Ukraine conflict, which is also considered to be an unusual or infrequent event.
+Added: Although the full and direct impact of the COVID-19 pandemic and the Russia-Ukraine conflict on the Trust’s net comprehensive income (loss) during the three and nine months ended September 30, 2022 and 2021 cannot be known, it is believed that the COVID-19 pandemic and the Russia-Ukraine conflict have each independently impacted the Closing Spot Rate, the interest
+Added: 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) continued its negative performance in the third quarter of 2022, weighed down heavily by further strengthening of the US dollar, which hit over 20-year highs in September, and the sharp selloff in commodities.
+Added: Both were triggered by growing recession fears and expectations for aggressive Federal Reserve (Fed) rate hikes.
+Added: With Australia being a net energy exporter and commodities accounting for a large share of the country’s exports, lower goods prices dent demand for the “commodity currency.”
+Added: The Australian dollar (AUD/USD) performed negatively in the third quarter of 2021, continuing its downtrend from Q2 as the US dollar strengthened on rising treasury yields resulting from the Fed’s hawkish turn, and commodities sold off on the rapid spread of the delta variant of COVID-19.
+Added: Commodities make up a large portion of the country’s exports, leaving the country’s currency subject to price trends in the asset class.
+Added: Despite being the best performing G10 currency in Q1, 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 Q2 and Q3 of 2022, succumbing to recession-fears driven dollar strength and the sharp commodities sell off (especially in Q3).
+Added: 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.
+Added: The Australian dollar (AUD/USD) ended the first three quarters of 2021 lower.
+Added: In Q1, the US dollar rebounded on strong domestic economic recovery and rising treasury yields while persistent market volatility reduced investor demand for the perceived riskier Aussie.
+Added: Then, despite rallying a bit in Q2 on a weakening US dollar and strengthening commodities prices, resurging COVID concerns and the Fed’s hawkish turn in the second half of Q2 into Q3 led to a spike in the US dollar and a sharp selloff in commodities, pushing returns back into negative territory.
+Added: Additionally, the interest rate paid by the Depository has generally trended downward over the past several years, slightly offset by improvements this quarter, to the current interest rate of 0.40%, as set forth in the FXA Rate Chart above.
As long as the Sponsor’s fee and the interest expense on currency deposits, if any, exceed interest income, the Trust will incur a net comprehensive loss.
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.