WOOL prices retracted at auctions this week, heavily influenced by a stronger Australian dollar against the United States currency. The Australian Wool Exchange reported the wool market as unable to maintain its sharp upward trajectory of recent weeks. “Currency movements were a key influence on market results this week, with the Australian dollar strengthening against the US dollar. “At the same time, the US dollar eased as markets digested recent Federal Reserve policy decisions.”AWI said from a broader perspective, the divergence between AUD and USD wool prices indicates that underlying offshore demand remains supportive, with the recent easing in local prices largely currency-driven. “Should the Australian dollar stabilise or weaken, current USD price strength suggests the potential for improved AUD returns.