Again, this fall in Australian wool prices largely reflects a lift in the value of the $A against the $US during the week, rather than any major softening in the demand for wool.

The $A-$US exchange rate was up by 1.9pc since last week's sale, to US65.7¢.

Buyers for China again dominated this week’s sales and they mostly buy in $US.

So, when looked at in US currency, the EMI actually rose for them by 4¢/kg (0.8pc), making wool more expensive.

The Australian Wool Industries Secretariat says the exchange rate effects were generally seen across all Merino micron ranges, except for the 19.0 and 19.5 micron wools where the price falls were greater than for other Merino wools.

The exchange rate against the euro against the $A, in contrast, fell by 1pc, down to 50.32 euro cents on Thursday night.

So wool was cheaper for the Europeans, with the EMI in euros down by 2.2pc.

Performance of the regional indicators at auction in Australia were:

• Sydney, the northern indicator was down 5¢/kg, to close on 813¢/kg.

• Melbourne, the southern indicator fell by 13¢/kg, closing on 752¢/kg.

• Fremantle, the western indicator fell by 4¢/kg, to 745¢/kg.

A total of 39,565 bales were on offer nationally, compared with 48,339 bales last week.

This week's offering turned out to be surprisingly low, given that the forecast provided last Thursday night was for 45,300 bales

Of these, 14.2pc were passed in.

Fremantle recorded by far the biggest pass-in rate, at 23pc.

In Sydney, 8pc of the offering was passed in, with 13pc in Melbourne.

The New Zealand Merino Company also offered 3,951 bales in Melbourne on Tuesday.

Sales will be held in Sydney, Melbourne and Fremantle next week - in the last sale before the three-week Christmas break.

A total of 47,160 bales is currently rostered for sale - there was no sale in the corresponding week last year for comparison.