In Pakistan, this is a session where many traders don’t open the trades. Sydney marks the start of the trading day on the forex market. Though not as busy as London or New York sessions, Sydney still presents unique opportunities for traders who know which currency pairs to focus on.
Furthermore, as it overlaps with Tokyo for several hours, it makes this time especially suitable for trading Asian and Pacific currencies. And the volatility is not much higher, so fewer trades are expected as compared with the New York session.
Why Trade the Sydney Session?
If you have a range breakout strategy, then often you can get entries in this session. The Sydney session (10 PM to 7 AM GMT) is the initial opening session after each weekend, setting the pace for early price movements in the market. Although liquidity tends to be lower compared with other sessions, tighter ranges may occur at times; but traders looking for steady movements and reduced volatility might find this session suitable. And for Australian pairs, this session always works best.
Best Currency Pairs for Trading in the Sydney Session
Although we can trade in any pair in any session, the thing that matters is the type of strategy you want to play with. But some specific pairs have big momentum in the Sydney session; these are given below.
AUD/USD (Australian Dollar vs US Dollar):
When Australia is active during the Sydney session, trading volume increases considerably for Australian Dollar pairs like this one due to their liquidity and predictable movement during this time. This pair has become one of the most sought-after due to the time zone activity.
AUD/JPY (Australian Dollar/Japanese Yen):
Normally, both of these markets have the same time for opening, which is why if you are looking to trade in AUD pairs, then you may have to check on JPY pairs as well. When both Australian and Japanese markets open simultaneously, AUD/JPY becomes highly active – perfect for traders seeking volatility with clear directionality.
NZD/USD (New Zealand Dollar and United States Dollar):
New Zealand Dollar has proven an essential pair for both scalping and intraday trading purposes. Furthermore we should note that often emerging as an active forex currency pair during Sydney trading sessions due to economic announcements or commodity price movements.
AUD/NZD (Australian Dollar/New Zealand Dollar):
If you want a little high volatility, then this pair can give you the required pips. Even in 1-2 hours, you can expect sufficient pips. This cross pair is highly liquid when both the Australian and New Zealand markets are open; traders often utilize it to capture price fluctuations between these neighboring economies.
USD/JPY (US Dollar vs Japanese Yen):
Even though USD/JPY doesn’t directly relate to Australia or New Zealand, due to Japan’s market hours overlapping with Sydney’s, it remains an active trade option and offers reliable volatility for traders seeking volatility. Mostly, you will see almost the same momentum in JPY pairs that is why if you pick up the right entry, then you can enjoy profit in each JPY pair.
Final Thoughts
Sydney may not be the busiest trading session, but it still offers significant potential in trading AUD, NZD, and JPY pairs. By focusing on these currencies, early market momentum can be taken advantage of while traders prepare themselves for the transition into Tokyo and London sessions.
