The forex market is the largest financial market in the world, with trillions of dollars traded every day. It is a 24-hour market that operates five days a week. The forex market is split into four major sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its own characteristics and trading opportunities. In this article, we will focus on the best forex pairs to trade during the Australian session.
The Australian session is the first major forex trading session of the day, starting at 5:00 PM EST and ending at 2:00 AM EST. This session overlaps with the Asian trading session, which includes Tokyo, Singapore, and Hong Kong. The Australian session is known for its volatility, as it is the first session to open after the weekend, and it is the time when economic data is released from Asia.
Here are the best forex pairs to trade during the Australian session:
1. AUD/USD
The AUD/USD is the most popular forex pair to trade during the Australian session. This pair is also known as the “Aussie” and is heavily influenced by the price of gold, which is a major export of Australia. The AUD/USD is also affected by economic data releases from both Australia and the US. Traders should pay attention to the Reserve Bank of Australia’s monetary policy decisions, as well as the US Non-Farm Payrolls report.
2. NZD/USD
The NZD/USD is another popular forex pair to trade during the Australian session. This pair is also known as the “Kiwi” and is heavily influenced by the price of dairy, which is a major export of New Zealand. The NZD/USD is also affected by economic data releases from both New Zealand and the US. Traders should pay attention to the Reserve Bank of New Zealand’s monetary policy decisions, as well as the US Non-Farm Payrolls report.
3. USD/JPY
The USD/JPY is a popular forex pair to trade during the Australian session because it is heavily traded in the Asian markets. This pair is also known as the “Ninja” and is affected by economic data releases from both Japan and the US. Traders should pay attention to the Bank of Japan’s monetary policy decisions, as well as the US Non-Farm Payrolls report.
4. AUD/JPY
The AUD/JPY is a popular forex pair to trade during the Australian session because it combines the volatility of the AUD/USD with the heavily traded USD/JPY. This pair is also affected by economic data releases from both Australia, Japan, and the US. Traders should pay attention to the Bank of Japan’s monetary policy decisions, as well as the Reserve Bank of Australia’s monetary policy decisions and the US Non-Farm Payrolls report.
5. AUD/NZD
The AUD/NZD is a forex pair that is heavily traded during the Australian session because it combines the volatility of the AUD/USD with the Kiwi’s dairy price influence. This pair is also affected by economic data releases from both Australia and New Zealand. Traders should pay attention to the Reserve Bank of Australia’s and Reserve Bank of New Zealand’s monetary policy decisions.
In conclusion, the Australian session offers a lot of trading opportunities for forex traders. Traders should focus on the AUD/USD, NZD/USD, USD/JPY, AUD/JPY, and AUD/NZD forex pairs during this session. These pairs are heavily influenced by economic data releases from Australia, New Zealand, Japan, and the US. Traders should also pay attention to the monetary policy decisions of the Reserve Bank of Australia, Reserve Bank of New Zealand, and the Bank of Japan.
