Forex trading is a 24-hour market, and the Sydney session is one of the most active sessions in the forex market. The Sydney session starts at 9 PM GMT and ends at 6 AM GMT. During this time, traders from different parts of the world take part in the market activities. The Sydney session is known for its volatility and liquidity, which makes it an ideal time for traders looking to make profits. In this article, we will discuss the forex pairs that trade the best during the Sydney session.
The forex market is made up of different currency pairs, and each pair has its unique characteristics. Some currency pairs are more volatile than others, while some are less volatile. The volatility of a currency pair depends on various factors, such as economic news releases, political events, and market sentiment. During the Sydney session, some currency pairs are more active than others, and traders can take advantage of this to make profits.
The most active forex pairs during the Sydney session are the AUD/USD, NZD/USD, and USD/JPY. These currency pairs are the most liquid during this time, and they offer traders good trading opportunities. Let’s take a closer look at each of these currency pairs.
AUD/USD
The AUD/USD is one of the most popular currency pairs in the forex market. The Australian dollar is the base currency, and the US dollar is the quote currency. During the Sydney session, the AUD/USD is the most active currency pair because both the Australian and the US markets are open at the same time. The AUD/USD is also influenced by economic news releases from Australia and the US, which makes it a volatile currency pair.
Traders can take advantage of the volatility of the AUD/USD to make profits. They can use technical analysis to identify trading opportunities or fundamental analysis to trade based on economic news releases. The AUD/USD is also a good currency pair for carry trading, where traders can take advantage of the interest rate differential between Australia and the US.
NZD/USD
The NZD/USD is another popular currency pair during the Sydney session. The New Zealand dollar is the base currency, and the US dollar is the quote currency. The NZD/USD is influenced by economic news releases from New Zealand and the US, which makes it a volatile currency pair.
Traders can use technical analysis or fundamental analysis to trade the NZD/USD. The currency pair is also suitable for carry trading because of the interest rate differential between New Zealand and the US. Traders can take advantage of the interest rate differential to earn profits from the currency pair.
USD/JPY
The USD/JPY is a popular currency pair during the Sydney session because the Japanese market is open during this time. The US dollar is the base currency, and the Japanese yen is the quote currency. The USD/JPY is influenced by economic news releases from the US and Japan, which makes it a volatile currency pair.
Traders can use technical analysis or fundamental analysis to trade the USD/JPY. The currency pair is also suitable for carry trading because of the interest rate differential between the US and Japan. Traders can take advantage of the interest rate differential to earn profits from the currency pair.
Conclusion
The Sydney session is one of the most active sessions in the forex market, and traders can take advantage of this to make profits. The AUD/USD, NZD/USD, and USD/JPY are the most active currency pairs during this time, and traders can use technical analysis or fundamental analysis to trade these currency pairs. The currency pairs are also suitable for carry trading, where traders can take advantage of the interest rate differential between the countries. Traders should always be aware of the risks involved in forex trading and should manage their risk properly to avoid losses.
