Best Pairs to Trade During Sydney Session

If you are new to forex trading, this is a great topic to learn. The Sydney forex session is the first big time when markets open each day. It can be a good chance to make money if you know what to do. In this blog, we will explain everything in simple words. We will cover the Sydney session hours, what makes it special, the top currency pairs to trade, some easy strategies, and tips to stay safe.

Forex trading happens all over the world, 24 hours a day, from Monday to Friday. But it is split into sessions based on big cities. The Sydney session starts things off. It overlaps a bit with the Tokyo session, which makes it part of the Asian session.

Best pairs to trade during the Sydney session

What is the Sydney Session?

The Sydney forex session is named after Sydney, Australia. It is when banks and traders in Australia and nearby places start working. This session is important for Australasian currencies like the Australian dollar (AUD) and New Zealand dollar (NZD). The Japanese yen (JPY) also plays a big role because Japan is close.

During this time, the market is not as wild as in other sessions. Prices move more slowly, and there is less money flowing around. This means lower volatility. But that can be good for beginners. You can practice without big surprises. News from Australia, like jobs data or interest rates, can make prices jump. 👉 Get the 7 Hidden Forex Secrets - Free PDF Download

Sydney Session Hours

Let's look at the Sydney session forex time. It opens at 10 PM GMT and closes at 7 AM GMT. That is about 5 PM EST to 2 AM EST in the US. In Australia, it is from 8 AM to 5 PM AEST. But remember, times change with daylight saving. Always check a forex market hours tool to be sure.

This session starts the trading week on Sunday night in some places. It ends when Tokyo gets busier. The overlap with Tokyo from 12 AM to 7 AM GMT can bring more action. If you live in Asia or Australia, this is a perfect time to trade without staying up late.

Characteristics of the Sydney Session

The Sydney trading session has some key features. First, it has lower liquidity. That means fewer buyers and sellers, so spreads might be wider. Spreads are the cost to trade. Second, it focuses on Asian currencies. Pairs with AUD, NZD, and JPY move the most.

Volatility is low, but not zero. You can see 30-40 pip moves in the top pairs. Pip is a small price change. Economic news from Australia or China affects this session a lot. China is a big trade partner for Australia. So, watch for data on commodities like gold or iron ore.

This session is great for range trading. Prices often bounce between high and low points. Not many big trends happen here. But if you like calm trading, it is ideal.

Best Pairs to Trade During Sydney Session

Best forex pairs Sydney session. Based on how active they are, here are the top ones. We picked these because they have good volume and respond to local news.

• AUD/USD - This is the star of the Sydney session pairs. AUD is from Australia, so it moves a lot here. USD is the world's main currency. Trade this when Australian news comes out, like GDP or rate changes. It is liquid and has tight spreads. Average daily range: 50-70 pips.

• NZD/USD - Like AUD/USD, but for New Zealand. NZD is close to AUD, so they often move together. News from dairy prices or tourism affects it. This pair is good for Sydney session trading because New Zealand is in the same time zone. It has steady moves.

• USD/JPY - Japan is active during the overlap. JPY is a safe currency. This pair reacts to US and Japan news. It is one of the most traded pairs in the Asian session. Volatility picks up if the Bank of Japan speaks.

• AUD/JPY - This mixes AUD and JPY. It is popular because both countries trade a lot. Risk sentiment affects it. When people feel good about the economy, AUD/JPY goes up. Good for cross pairs in the Sydney session.

• NZD/JPY - Similar to AUD/JPY. NZD and JPY make a nice pair for carry trades. Carry trade means borrowing low-interest money to buy high-interest. But be careful in low volatility.

• AUD/NZD - This is a close pair. Both currencies are from neighbors. It moves on differences between the Australian and New Zealand economies. Low volatility, perfect for beginners in Sydney forex pairs.

  
  

These are the best currency pairs to trade in the Sydney forex trading session. They have the most action. Avoid pairs like EUR/GBP here; they sleep until London opens.

Strategies for Trading in the Sydney Session

To win with these best pairs during the Sydney session, use simple strategies. First, range trading. Draw lines on charts for support and resistance. Buy at low, sell at high. Tools like RSI help spot overbought or oversold.

Second, news trading. Watch the economic calendar for Australian or New Zealand releases. Trade right after the news if it surprises. But use stop losses to protect money.

Third, scalping. Make many small trades for quick pips. Since volatility is low, aim for 5-10 pips per trade. Use 1-minute charts.

For the long term, look at trends in commodities. AUD likes gold prices. If gold goes up, AUD/USD might too.

Remember, practice on a demo account first. And if you want help, check out free Forex & gold signals on ForexCitySignal.com. They give tips for trades like these.

Risks and Tips

Trading has risks. In the Sydney session, low liquidity can cause slips. Prices might jump past your stop. Use limit orders.

Tip 1: Manage risk. Never risk more than 1-2% of your money per trade.

Tip 2: Use leverage wisely. High leverage can lose money fast.

Tip 3: Stay updated. Follow the news on apps or sites.

Tip 4: Combine with other sessions. Sydney sets up for Tokyo.

Tip 5: Join communities. Learn from others.

One more thing: For free Forex & gold signals, try the Telegram channel from ForexCitySignal.com. It is helpful for signals during Asian times. 👉Get the 7 Hidden Forex Secrets - Free PDF Download

FAQ:

What are the best pairs to trade during the Sydney session?

The top ones are AUD/USD, NZD/USD, USD/JPY, AUD/JPY, NZD/JPY, and AUD/NZD. They move the most due to local activity.

What time is the Sydney forex session?

It runs from 10 PM to 7 AM GMT. Adjust for your time zone.

Is the Sydney session good for beginners?

Yes, because it is less volatile. You can learn without big losses.

What affects prices in the Sydney session?

News from Australia, New Zealand, Japan, and commodities like gold.

Can I trade other pairs in Sydney?

You can, but they have less movement. Stick to Asian pairs for better results.

How to get free signals for these pairs?

Visit ForexCitySignal.com for free Forex and gold signals.