The worsening financial situation in the European Union has seen the Australian dollar drop against the US dollar over the past few days and has slipped by 7 cents during the month.
According to experts, this could mean a slowdown in wool sales as buyers; particularly the Chinese, who may adopt a wait-and-watch attitude on expectations that the Australian dollar may fall further.
This is so, because a further drop against the US dollar would mean that wool can be purchased cheaper, by the Chinese, who are the biggest customers of Australian wool in the world.