Australian wool prices declined this week due to sharp foreign exchange fluctuations and cautious exporter sentiment. The Australian dollar surged over 6% against both the US dollar and Chinese yuan, hurting auction competitiveness.
· The Eastern Market Indicator fell by 2.4%, and the Western Indicator dropped 3.6%.
· Merino fleece prices dropped 35–50 cents, with most of the decline occurring on the first auction day.
· Despite lower demand, ongoing manufacturing orders and forward contracts helped prevent steeper losses.
· The sharp currency movement was linked to easing US-China tensions after certain Chinese tech products were exempted from tariffs.
A market recess next week is expected to give stakeholders time to assess the situation and make more informed trading decisions.
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