The foreign exchange market is a decentralized market that operates 24 hours a day, five days a week. The forex market is divided into four major trading sessions that cover different time zones across the globe: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has its own unique characteristics and trading opportunities. The market opens at 3 am EST with the Sydney session.
The Sydney session is the first major trading session that opens in the forex market. It starts at 5:00 PM EST on Sunday and runs until 2:00 AM EST on Monday. The Sydney session is also known as the Asian session, as it covers trading activity in Australia, New Zealand, Japan, and other countries in the Asia-Pacific region. This session is relatively quiet compared to the other sessions, but it can still provide good trading opportunities.
The Sydney session is characterized by low volatility and low liquidity. This is because the market is still waking up in the Asia-Pacific region, and most of the major financial centers in the region are yet to open. However, this session can still be profitable for traders who know how to take advantage of the market conditions. For example, traders can focus on currency pairs that are specific to the Asia-Pacific region, such as the AUD/USD, NZD/USD, and USD/JPY.
The AUD/USD and NZD/USD are often referred to as commodity currency pairs, as they are heavily influenced by the price of commodities such as gold and oil. Australia and New Zealand are major commodity exporters, and their currencies are tied to the performance of these commodities. Traders who are interested in trading these currency pairs should keep an eye on the price of commodities and any news or events that may affect their value.
The USD/JPY is one of the most popular currency pairs in the forex market. It is often referred to as the “Ninja” or “Gopher” currency pair. The Japanese yen is a safe-haven currency, which means that it tends to appreciate in value during times of market uncertainty or instability. Traders who are interested in trading the USD/JPY should keep an eye on the economic and political developments in the United States and Japan.
The Sydney session is also a good time to trade the news. Economic data releases from Australia, New Zealand, and Japan can have a significant impact on the value of their respective currencies. Traders who are interested in trading the news should keep an eye on the economic calendar and prepare their trades in advance.
In conclusion, the Sydney session is the first major trading session that opens in the forex market. It is characterized by low volatility and low liquidity, but it can still provide good trading opportunities for traders who know how to take advantage of the market conditions. Traders who are interested in trading during the Sydney session should focus on currency pairs that are specific to the Asia-Pacific region and keep an eye on the economic and political developments in the region. Trading during the Sydney session requires patience and discipline, but it can be profitable for traders who are willing to put in the time and effort.
