The Australian wool market is looking optimistic with USA to the Australian dollar exchange rate dropping below 65 cents. Andrew Partridge from Michell Wool spoke with Flow FM's Market day show to discuss the international wool markets.
The RBA rate increase has pushed the value to almost 67 cents increasing the value of wool in USA dollar terms.
"We have a bit of the RBA to thank with the exchange right now pushing up towards 67 [cents] So obviously that increases the value of wool in US terms and that's how wool is sold in China, mainly in US dollars to our biggest customer," Mr Partridge said.
The Chinese market last saw some late buyers last week which helped the Australian selling price.
"[Last week] we saw particularly the larger Chinese mills buying a lot more wool than they would have. Basically 50% more than we normally see them buy.
So they maybe bought some currency before they, traded some currency and before the actual lift and then they've capitalized on that. They've got cheaper wool as a result," Mr Partridge said.