The forex market is a 24-hour market which means that it is open for trading all day and night. However, not all trading sessions are the same, and each session comes with its unique characteristics. The Asian trading session is one of the most important trading sessions in forex trading. It is the first trading session of the day and is characterized by lower volatility and liquidity compared to the European and American trading sessions. In this article, we will discuss what pairs you should trade during the Asian session of forex trading.
The Asian session begins at 00:00 GMT and ends at 09:00 GMT. This session covers the trading hours of major financial centers such as Tokyo, Hong Kong, Singapore, and Sydney. During this session, traders focus on the currencies of the Asian countries, including the Japanese yen, Australian dollar, and New Zealand dollar.
The Japanese yen is the most traded currency during the Asian session. Japan is one of the largest economies in the world, and the yen is considered a safe-haven currency. The yen is also heavily traded against the US dollar, and this currency pair is known as USD/JPY. The USD/JPY pair is one of the most traded currency pairs in the world, and it is highly liquid during the Asian session.
Another popular currency pair during the Asian session is the Australian dollar and the US dollar (AUD/USD). The Australian dollar is the fifth most traded currency in the world, and it is heavily influenced by the commodity markets. During the Asian session, the Australian dollar is highly liquid, and traders often use it to trade against the US dollar.
The New Zealand dollar is also highly traded during the Asian session. The NZD/USD pair is a popular currency pair, and it is highly influenced by the commodity markets. New Zealand is a major exporter of agricultural products, and the price of these products often affects the value of the New Zealand dollar.
In addition to the major currency pairs, traders can also trade exotic currency pairs during the Asian session. Exotic currency pairs are currency pairs that include currencies from emerging or developing countries. These currency pairs are highly volatile and are often influenced by political and economic events in these countries. Some examples of exotic currency pairs include the USD/MXN (US dollar/Mexican peso), USD/SGD (US dollar/Singapore dollar), and USD/CNH (US dollar/Chinese yuan).
In conclusion, the Asian session is an important trading session in forex trading, and traders should focus on the currencies of the Asian countries during this session. The Japanese yen, Australian dollar, and New Zealand dollar are the most traded currency pairs during the Asian session, and traders can also trade exotic currency pairs during this session. It is important to note that the Asian session is characterized by lower volatility and liquidity compared to the European and American trading sessions, and traders should adjust their trading strategies accordingly.
