How to Trade Sydney Session Forex Pairs: A Comprehensive Guide

Sydney Session Forex Pairs

When it comes to forex trading, timing is everything. The 24-hour nature of the market offers unique opportunities and challenges. Among the four major forex trading sessions, the Sydney session stands out for its distinct characteristics. It’s essential to understand these nuances to trade effectively. Let’s delve into the specifics of the Sydney session and the best strategies to capitalize on its unique dynamics.

Understanding the Sydney Forex Session

The Sydney session, also known as the Australian session, kicks off at 10:00 PM GMT and wraps up at 7:00 AM GMT. During this period, it overlaps with the Asian session, encompassing major financial hubs like Tokyo, Singapore, and Hong Kong. Unlike the London and New York sessions, the Sydney session typically exhibits less volatility, making it an intriguing playground for forex traders. For more insights on the role of timing in trading, check out Trading Strategy Parameters and Optimization.

Best Currency Pairs for the Sydney Session

AUD/USD: A Commodity Powerhouse

The Australian dollar (AUD), being a commodity currency, is heavily influenced by global commodity prices. As Australia is a significant exporter of metalliferous ores, coal, and natural gas, fluctuations in these markets directly impact the AUD’s strength. The AUD/USD pair, therefore, is a prime candidate for speculation on the Australian economy’s health. If you’re bullish on the AUD, going long on AUD/USD is a smart move, and vice versa for a bearish stance. For a beginner’s guide to making money in trading, including currency pairs, visit How to Make Money Trading: A Beginner’s Guide.

AUD/JPY: The Regional Power Play

If you’re looking to capitalize on Australia’s relative strength but wary of global factors influencing the AUD/USD pair, consider the AUD/JPY. As Japan is a major trade partner of Australia, this pair offers a more localized view of the AUD while maintaining decent liquidity. Moreover, Japan’s focus on machinery and electronics exports, combined with typically lower interest rates, makes AUD/JPY a favorite for carry traders. Learn more about the intricate dynamics of market players like these in Market Makers.

NZD/USD: The Agrarian Angle

New Zealand’s extensive agricultural system and trade relationships make the NZD (New Zealand dollar), or ‘kiwi’, a popular choice in the Sydney session. The currency is influenced by changes in prices of key exports like dairy products, meat, and forest products. Trading the NZD against the USD provides a window into these economic dynamics. For a deeper understanding of forex, check out What is Forex God?.

USD/JPY: The Global Gauge

The USD/JPY pair is a staple in forex trading and a significant player in the Sydney session. As the world’s reserve currency, the USD has a substantial impact on global financial markets, with every major central bank and financial institution using it for international transactions. Interest rate decisions by the Federal Reserve (FED) are particularly influential. Conversely, the value of the yen is tied to Japan’s export-driven economy and monetary policy decisions by the Bank of Japan. For more on currency dynamics, explore Forex God.

NZDJPY: The Speculative Pair

NZD/JPY, much like AUD/JPY, is a favored pair for carry trading. Watching the trade balance between Japan and New Zealand can provide insights into this pair’s movements. Factors like inflation, unemployment rates, and GDP growth in both countries also play a crucial role. Keep an eye on data releases from both nations for potential trading opportunities. Learn about the impact of inexperience in forex markets at How Inexperience Causes Massive Losses in the Forex Markets.

Risk Management: The Key to Survival

Effective risk management is vital in forex trading. Utilize stop-loss and take-profit orders to mitigate potential losses and secure profits. Overleveraging is a common pitfall; avoid it and diversify your portfolio to reduce risk exposure. For a comprehensive guide on risk management strategies, particularly in prop trading, visit Risk Management in Prop Trading.

Advanced Trading Techniques

Breakout Strategy

The breakout strategy is key during the Sydney session. It involves identifying crucial support and resistance levels and entering trades when prices break these barriers. This approach, hinging on careful analysis and risk management, is particularly effective when news from Asian markets triggers market volatility. To avoid pitfalls like false breakouts, stay informed and agile. For insights into common trading mistakes, visit 10 Common Mistakes in Trading You Must Avoid.

Range Trading

In the Sydney session’s lower volatility, range trading is an effective strategy. It involves capitalizing on the price movements of currency pairs within a specified range. Identifying support and resistance levels is crucial for this strategy to be successful.

News Trading

Leveraging market volatility caused by economic news releases is a potent approach. Paying close attention to Asian economic indicators and placing pending orders based on expected market reactions can yield significant returns.


What is the Best Pairs to Trade?

The most recommended pairs for the Sydney session are AUD/USD, AUD/JPY, NZD/USD, USD/JPY, and NZD/JPY due to their liquidity and volatility.

What is the Best Time to Trade AUD/JPY?

The most opportune time to trade AUD/JPY is between midnight and 6 am GMT, aligning with peak trading hours in Japanese and Australian markets.

1 Pip is Equal to how many Dollars?

The value of 1 pip varies depending on the currency pair being traded. For most currency pairs, 1 pip is equal to 0.0001 of the currency unit. However, its dollar value depends on the size of your trade and the currency pair. For example, in a standard lot of 100,000 units of currency, 1 pip typically equals $10 for USD pairs.

What Time is New York Session in Forex?

The New York forex trading session typically runs from 8:00 AM to 5:00 PM Eastern Time (ET). This session is known for high liquidity and significant movements in USD and CAD currency pairs.

What to Trade During Sydney Session?

During the Sydney forex trading session, traders often focus on currency pairs involving the Australian dollar (AUD) and New Zealand dollar (NZD). Pairs like AUD/USD, AUD/JPY, and NZD/USD are popular choices due to their higher volatility and liquidity during these hours.


Trading Sydney session forex pairs requires a nuanced understanding of market dynamics, the right selection of currency pairs, and the implementation of advanced trading strategies. By staying informed, practicing effective risk management, and adapting to market conditions, traders can maximize their success in the Sydney session.

sydney session forex pairs

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