What changed in Invesco CurrencyShares Australian Dollar Trust's 10-K — 2024 vs 2025

That was not the case in 2025, when interest income exceeded expenses by a significant margin; but, when expenses exceed interest income, the Trustee needs to withdraw Australian Dollars from the Trust to pay the excess expenses.

This volatility could materially and adversely affect the performance of the Shares. The United States, under the Trump administration, has implemented significant tariff increases on imports from a large number of countries, affecting a broad array of goods, and has signaled that additional tariffs may be imposed. These actions are part of a broader shift in U.

S. trade policy that has at times been difficult to predict. The potential for further escalation, including the imposition of new or higher tariffs with limited notice, has contributed to increased uncertainty in global markets. In response, other countries, including China, have announced retaliatory measures.

While some tariff reductions have been implemented pursuant to temporary arrangements between the United States and various trading partners, such measures remain subject to reversal. These developments have contributed to increased volatility in foreign exchange markets, including fluctuations in the USD/Australian Dollar exchange rate. Sustained or increased volatility could materially and adversely affect the performance of the Shares.

In the case of insolvency of the Depository or JPMorgan Chase Bank, N.A., the U.S. bank of which the Depository is a branch, a liquidator may seek to freeze access to the Australian Dollars held in all accounts by the Depository, including the Deposit Accounts.

Compromises in the software supply chain or incidents at critical third-party vendors could magnify the operational impact of a cyber event and impair the Trust’s ability to process Shareholder or Basket transactions. In addition, substantial costs may be incurred in order to prevent any cyber incidents in the future.

The Sponsor oversees cybersecurity risks for the Trust by applying Invesco’s enterprise policies and control framework to the Trust’s operations and service providers and by escalating any Trust‑relevant findings through the Sponsor’s management reporting and certification processes.

The Trust did not experience any material cybersecurity incidents during the year ended December 31, 2025 , and cybersecurity risks did not materially affect the Trust’s business strategy, results of operations, or financial condition in the period. In addition, security controls, no matter how well designed or implemented, may only mitigate and not fully eliminate risks.

(c) Although the Trust does not redeem Shares directly from its Shareholders, the Trust, from time to time, redeems Baskets from Authorized Participants.

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. rate cuts.

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.