Forex trading is a global market that operates 24 hours a day, five days a week. However, the market is not equally active throughout the day. The Asian trading session, which starts at 9:00 PM GMT and closes at 8:00 AM GMT, is relatively less volatile compared to the European and American sessions. But that does not mean that there are no opportunities to make a profit during the Asian session. In this article, we will discuss the best pairs to trade in forex Asian time.
Before we dive into the pairs, it’s important to understand the factors that impact the forex market during the Asian session. The Asian session is dominated by the Tokyo session, which is the third-largest forex trading center in the world, accounting for about 21% of the total daily turnover. Some of the key events that impact the market during the Asian session include:
1. Economic data releases: Economic data from Japan and other Asian countries can impact the forex market during the Asian session. Some of the key economic indicators to watch out for include GDP, inflation, and employment data.
2. Central bank announcements: The Bank of Japan (BOJ) is one of the most influential central banks in the world. Any announcements or policy decisions by the BOJ can cause significant movements in the forex market.
3. Commodity prices: Many Asian countries are major exporters of commodities such as oil, gold, and copper. Any changes in commodity prices can impact the currencies of these countries.
Now let’s look at the best pairs to trade during the Asian session:
1. USD/JPY: The USD/JPY pair is the most traded currency pair during the Asian session, accounting for about 17% of the total daily turnover. The pair is popular among traders due to the high liquidity and volatility. The Japanese yen is often seen as a safe-haven currency, and any developments in the Japanese economy can impact the pair.
2. AUD/USD: The AUD/USD pair is also popular among traders during the Asian session, accounting for about 7% of the total daily turnover. The Australian dollar is often seen as a proxy for commodity prices, and any changes in commodity prices can impact the pair. Additionally, any economic data releases from Australia can also impact the pair.
3. EUR/JPY: The EUR/JPY pair is another popular pair during the Asian session, accounting for about 5% of the total daily turnover. The pair is often used as a proxy for risk sentiment, and any changes in the global economic outlook can impact the pair.
4. NZD/USD: The NZD/USD pair is also a popular pair during the Asian session, accounting for about 3% of the total daily turnover. The New Zealand dollar, like the Australian dollar, is often seen as a proxy for commodity prices, and any changes in commodity prices can impact the pair.
5. USD/SGD: The USD/SGD pair is a popular pair among traders during the Asian session, accounting for about 2% of the total daily turnover. The Singapore dollar is often seen as a proxy for the Asian economy, and any developments in the Asian economy can impact the pair.
Conclusion:
The Asian session may not be as volatile as the European or American sessions, but there are still plenty of opportunities to make a profit. Traders should look for pairs that are impacted by economic data releases, central bank announcements, and commodity prices. The USD/JPY, AUD/USD, EUR/JPY, NZD/USD, and USD/SGD are some of the best pairs to trade during the Asian session. However, traders should always keep an eye on the news and events that can impact the market and adjust their trading strategies accordingly.
