What are the best pairs to trade during sydney session

The foreign exchange market is by far the biggest and the most actively traded financial market across the globe known to offer round-the-clock trading.

Continuous trading is possible on this market because it is traded across the world in decentralized locations.

Forex market hours are divided into four primary trading sessions – New York, London, Sydney, and Tokyo. 

An understanding of market hours and the best times to trade in different sessions should help traders execute profitable trades without much effort to meet their goals.

In this guide, let us discuss the Sydney session forex hours and the best currency pairs to trade during this session. 

Sydney Session Forex Pairs – A Complete Guide

The Sydney session is the first of the four Forex trading sessions and the most appealing aspect of this session is its opening and closing time.

This is why traders should find favourable movement in currencies at any time as compared to other sessions. 

An understanding of the currency pairs available for trading, the best times to trade a session and the best pairs to trade during a session should help create a profitable trading plan and minimize risks. 

Understanding Sydney Forex Pairs

Currency pairs show varying levels of activity and volatility during the trading day depending on the active traders in the market at any given time.

However, being aware of the Forex sessions helps us find out what currency pairs are the most active at what time.

For example, the GBP/USD and EUR/USD pairs are the most active during the New York and London session overlap, showing high liquidity and volatility.

However, these pairs are less volatile and liquid during the Sydney session. 

There are several Forex pairs you can choose to trade during the Sydney session, the most common of which are AUD/NZD, USD/CHF, AUD/JPY, GBP/USD, EUR/USD, and USD/JPY.

The best times to trade these pairs depending on where you live and the currencies you are looking to trade.

For example, the best time to trade AUD/JPY is the most active trading hours of the Australian and Japanese markets which is generally between midnight and 6 am GMT. 

Best Pairs To Trade During Sydney Session

Each Forex trading session has its currency pairs carrying their significance. As the Sydney session comprises Australia and New Zealand, Australian Dollar and New Zealand Dollar are the most moving currencies in this session.

While the best currency pair for you depends on where you live and trade from, there is a lot of movement between USD and JPY currency pairs.

Trading in these pairs should be profitable for traders. 

Some of the most trending currencies include the Australian Dollar, Japanese Yen, and New Zealand Dollar as they are open in major markets these days.

While there are several currency pairs you can choose to trade in the Sydney session, two of the best pairs are USD/JPY and AUD/USD.

They are popular because of the high levels of volatility traders often look to benefit from. 

USD/JPY

This pair shows the exchange rate between the Japanese Yen and US Dollar, dictating how many Yen you need to buy one dollar.

The two currencies are closely related to one another which means the value of one influences the value of the other currency.

This is the reason why the currency pair has a different rate of interest as compared to others.

Moreover, the USD/JPY currency pair is the most popular and liquid currency in the forex market. 

AUD/USD

The AUD/USD currency pair has recently become the most traded pair, particularly in the forex market.

One of the reasons is that it is a combination of currencies from two beneficial economies namely America and Australia.

This pair indicates how many US dollars you need to get an Australian dollar and what the exchange rate is.

It is the most active trading pair these days and is the best pair for day trading considering its economic stability, performance, and high volatility. 

Best Pairs To Trade During Sydney & Tokyo Session

The Sydney & Tokyo session is a period when both the Sydney and Tokyo sessions are open at the same time.

Such an overlap represents a busy time as more participants are active.

Traders can expect higher liquidity and volatility during this session, making it one of the best times of the day to enter a trade. The Sydney & Tokyo overlap occurs from 2 am to 4 am EST. 

The Sydney & Tokyo Forex session is not as volatile as the US/London overlap but still offers an opportunity to trade.

The two most influenced currencies in this session are the Japanese Yen and Euro, so the best currency pair to trade during the session is EUR/JPY.

You can also consider trading AUD/USD during this session.

Such a market overlap is the best time to trade for those who like high volatility. 

Sydney Session Forex Time

Forex market operates 24 hours a day, 5 days per week, across four different sessions with different trading hours.

So, investors from different parts of the world can trade round-the-clock throughout the weekdays.

The Sydney session opens at 22:00 GMT and closes at 6:00 GMT (opening time – 5 pm EST and closing time – 2 am EST). 

This is when the trading day begins officially.

Though Sydney is the smallest of the markets, it sees a lot of action when the Forex market opens on Sunday noon as traders and institutional investors are looking to trade after the weekend pause.

The busiest time of the day for this session is 10 pm to 2 am in winter.

It is important to note that the forex session opening and closing times vary depending on the time of the year, as countries experiencing a change from daylight savings see a change in market hours in March, April, October, and November. 

Final Thoughts

We hope this guide provides you with useful information about the Sydney Forex session and currency pairs traded in the session.

Many traders avoid trading during this session looking at its low volatility but you can create profitable trading strategies to benefit from the opportunities this session offers.

Choose from the best pairs for the Sydney session and pay attention to the best trading times to minimize losses and increase profits. 

It is important to remember that forex trading hours can vary in March, April, October and November, as countries shift to and from daylight savings or summer times on different days.

Ready to start trading forex? Practise with a demo account or open a live account to get started

Why are the forex market’s trading times important?

The forex market’s trading times are important because, although it is open 24 hours a day, the market is more active during different sessions, or when there is a crossover between two sessions in different geographic locations, which means that spreads are tighter.

However, this increased activity is typically confined to currencies that are found in both locations of a crossover – for example, GBP/USD experiences greater trading volume when both the European and US sessions are open between 8am and 11 am (EST).

The beginning of each trading session is when the big institutions such as investment banks are active, and this is often when relevant economic data for each session is published.

Ready to start trading forex? Practice with a demo account or open a live account to get started

When is the best time to trade forex in the US?

Typically, the US forex market is most active just after the open of the New York session at 8am (EST). At this time, liquidity and volatility will likely be high as traders begin opening and closing their positions according to the market news for that morning.

Trading forex during the New York session

The New York session has the biggest overlap with the London session, so the GBP/USD cross can be highly liquid. The New York session is the last trading window to close on the 24-hour forex trading clock, and it often experiences high trading volume, as traders seek to squeeze the last bit of profit out of that trading session’s news announcements.

Many USD crosses experience their highest trading volumes during the New York session, and this represents a considerable slice of the forex market with USD included on one side of 44.15% of all daily forex transactions.1 The table below has information about some popular forex pairs and their average daily pip movement during the New York session over a 12-month period starting November 2018.

Pip movement during New York forex session

Now that you know what forex is, why you should trade it, and who makes up the forex market, it’s about time you learned when you can trade.

It’s time to learn about the different forex trading sessions.

Forex Trading Sessions

Yes, it is true that the forex market is open 24 hours a day, but that doesn’t mean it’s always active the entire day.

You can make money trading when the market moves up, and you can even make money when the market moves down.

BUT you will have a very difficult time trying to make money when the market doesn’t move at all.

And believe us, there will be times when the market is as still as the victims of Medusa.

Quiet Forex Sessions

This lesson will help determine when the best times of the day are to trade.

Forex Market Hours

Forex Market Hours

Before looking at the best times to trade, we must look at what a 24-hour day in the forex world looks like.

The forex market can be broken up into four major trading sessions: the Sydney session, the Tokyo session, the London session, and Trump’s favorite time to tweet (before he was banned), the New York session.

Historically, the forex market has three peak trading sessions.

Traders often focus on one of the three trading periods, rather than attempt to trade the markets 24 hours per day.

This is known as the “forex 3-session system“.

These sessions consist of the Asian, European, and North American sessions, which are also called Tokyo, London, and New York sessions.

Some traders prefer to differentiate sessions by names of the continent, other traders prefer to use the names of the cities.

(We prefer using city names but continents are cool also.)

DID YOU KNOW? The combined share of the top four trading centers, which includes London, New York, Singapore, and Hong Kong amounts to 75% of global FX turnover.

The International Dateline is where, by tradition, the new calendar day starts.

International Date Line

Since New Zealand is a major financial center, the forex markets open there on Monday morning, while it is still Sunday in most of the world.

Even though trading starts in New Zealand, it’s still called the Sydney session. Makes no sense but we don’t make the rules.

Until Friday, there is no time during the week when the market formally closes, although there is a brief lull in activity between about 19:00 and 22:00 GMT when most American traders have gone home and most Kiwi and Aussie traders are getting ready for work.

Other than the weekends, there are just two public holidays when the entire forex market is closed, Christmas and New Year’s Day.

Below are tables of the open and close times for each session:

Local TimeESTUTCSydney Open – 7:00 AM

Sydney Close  – 4:00 PM

4:00 PM

1:00 AM

9:00 PM

6:00 AM

Tokyo Open – 9:00 AM

Tokyo Close – 6:00 PM

7:00 PM

4:00 AM

12:00 AM

9:00 AM

London Open – 8:00 AM

London Close – 5:00 PM

2:00 AM

11:00 AM

7:00 AM

4:00 PM

New York Open – 8:00 AM

New York Close – 5:00 PM

8:00 AM

5:00 PM

1:00 PM

10:00 PM

Actual open and close times are based on local business hours, with most business hours starting somewhere between 7-9 AM local time.

Daylight Savings Time

Open and close times will also vary during the months of October/November and March/April as some countries (like the United States, United Kingdom, and Australia) shift to/from daylight savings time (DST).

The day of the month that a country shifts to/from DST also varies, confusing us even more.

The day of the month that a country shifts to/from DST also varies, confusing us even more.

And Japan doesn’t observe daylight savings, so thank you Japan for keeping it simple.

Now, you’re probably looking at the Sydney Open and wondering why it shifts two hours in the Eastern Timezone.

You’d think that Sydney’s Open would only move one hour when the U.S. adjusts for standard time, but remember that when the U.S. shifts one hour back, Sydney actually moves forward by one hour (seasons are opposite in Australia).

Keep this in mind if you ever plan to trade during that time period.

Dealing with DST is a pain but that’s what happens when a market trades around the clock!

It’s important to remember that the forex market’s opening hours will change in March, April, October, and November, as countries move to daylight savings on different days.

If you’re still confused, no worries! We built a Forex Market Hours tool that will automatically convert all four trading sessions in your local time zone. Use it as a reference until you remember the market hours from memory. 🧠

Trading Session Overlaps

Also take notice that in between each forex trading session, there is a period of time where two sessions are open at the same time.

For example, during the summer, from 3:00-4:00 AM ET, the Tokyo session and London session overlap

And during both summer and winter from 8:00 AM-12:00 PM ET, the London session and the New York session overlap.

Naturally, these are the busiest times during the trading day because there is more volume when two markets are open at the same time.

This makes sense because, during those times, all the market participants are wheelin’ and dealin’, which means that more money is transferring hands.

Now let’s take a look at the average pip movement of the major currency pairs during each forex trading session.

PairTokyoLondonNew YorkEUR/USD7611492GBP/USD9212799USD/JPY516659AUD/USD778381NZD/USD627270USD/CAD579696USD/CHF6710283EUR/JPY102129107GBP/JPY118151132AUD/JPY98107103EUR/GBP786147EUR/CHF7910984

From the table, you will see that the London session normally provides the most movement.

Notice how some currency pairs have much larger pip movements than others.

Daily Pip Range

To see the average pip movement for specific currency pairs in real-time, you can use our MarketMilk™ tool.

For example, here’s the volatility per hour for EUR/USD filtered by London and NY sessions:

EURUSD Volatility During London and NY Sessions

Let’s take a more in-depth look at each of the sessions, as well as those periods when the sessions overlap.

Written by Jane