The Asian session in forex is considered to be the quietest trading session, as it coincides with the time when most traders from Europe and the United States are asleep. However, this does not mean that there are no opportunities for traders during the Asian session. In fact, some currency pairs tend to move more during this session than during any other session.
The Asian session starts at 00:00 GMT and ends at 09:00 GMT, and it includes the trading hours of major financial centers in Asia such as Tokyo, Hong Kong, Singapore, and Sydney. During this session, the forex market is relatively less volatile, and the trading volume is lower compared to the European and North American sessions.
However, there are several currency pairs that tend to move more during the Asian session. These currency pairs are known as the Asian currency pairs, and they include the following:
1. USD/JPY: The USD/JPY currency pair is one of the most traded currency pairs in the forex market, and it tends to move more during the Asian session. This is because Japan is a major player in the Asian financial market, and its economic data releases during the Asian session can have a significant impact on the USD/JPY currency pair.
2. AUD/USD: The AUD/USD currency pair is also known as the Aussie dollar, and it tends to move more during the Asian session. This is because Australia is a major exporter of commodities such as gold, iron ore, and coal, and its economic data releases during the Asian session can have a significant impact on the AUD/USD currency pair.
3. NZD/USD: The NZD/USD currency pair is also known as the Kiwi dollar, and it tends to move more during the Asian session. This is because New Zealand is a major exporter of dairy products, and its economic data releases during the Asian session can have a significant impact on the NZD/USD currency pair.
4. USD/SGD: The USD/SGD currency pair is the Singapore dollar, and it tends to move more during the Asian session. This is because Singapore is a major financial center in Asia, and its economic data releases during the Asian session can have a significant impact on the USD/SGD currency pair.
5. USD/HKD: The USD/HKD currency pair is the Hong Kong dollar, and it tends to move more during the Asian session. This is because Hong Kong is a major financial center in Asia, and its economic data releases during the Asian session can have a significant impact on the USD/HKD currency pair.
In addition to the above currency pairs, other currency pairs that can move more during the Asian session include the USD/CNH (Chinese yuan) and the USD/KRW (South Korean won).
Traders who want to take advantage of the opportunities presented by the Asian session should keep an eye on the economic data releases of the countries whose currencies make up the Asian currency pairs. These data releases include GDP, inflation, employment, and trade balance data.
It is also important to note that the Asian session can be affected by unexpected news events such as natural disasters, political unrest, and central bank announcements. Traders should be prepared to adjust their trading strategies accordingly to take advantage of these events.
In conclusion, while the Asian session in forex may be considered the quietest trading session, there are still opportunities for traders to make profits. Traders who focus on the Asian currency pairs and keep an eye on the economic data releases of the countries whose currencies make up these pairs can take advantage of the opportunities presented by the Asian session. However, traders should also be prepared to adjust their trading strategies to take into account unexpected news events that can impact the Asian session.
