Best Pairs to Trade During Sydney Session in 2025

The Sydney session, running from 5 PM to 2 AM GMT (3 PM to 12 AM EST), marks the beginning of the forex trading day and offers unique opportunities for traders worldwide. As the first major financial center to open after the weekend, Sydney sets the tone for the Asian trading day before handing over to Tokyo, London, and New York. And understanding which currency pairs perform best during these hours can significantly impact your trading success.

In the rest of this guide, we will help you identify the most promising forex pairs to trade during the Sydney session. We’ll also show you common strategies to trade during this session.

But first, why trade the Sydney session?

Table of Contents

Why Trade the Sydney Session?

The Sydney forex trading session is not known for high volatility. It is also not the most active trading session for three of the most traded forex pairs: EURUSD, GBPUSD, and USDJPY. So, what’s the appeal of the Sydney session?

1. Manageable Volatility Levels

One of the most significant advantages of the Sydney session is its typically lower volatility. This creates an environment where price movements are often more predictable, and technical analysis tends to work more reliably. This reduced market noise provides an excellent learning ground for those still developing their trading skills.

2. Strategic Timing Advantages

The Sydney session offers strategic advantages depending on your geographic location. Asia-Pacific traders, for instance, can trade the session during local market hours for a better work-life balance. The early birds of the European traders can catch the end of the Sydney session before their workday begins. American traders can also explore evening trading opportunities that don’t require staying up all night. 

3. Market Gaps and Opportunities

Monday’s Sydney session is particularly noteworthy as it’s the first market to react to weekend news events. This often creates gaps and trading opportunities as prices adjust to new information that emerged while markets were closed.

4. Cleaner Technical Setups

With fewer market participants and institutional traders active, price action during the Sydney session frequently respects technical levels more clearly. Support and resistance zones, chart patterns, and trend lines often work more reliably without the choppiness common during busier sessions.

These are all great reasons to trade the Sydney session. Now, let’s move on to the pairs to trade:

The Best Sydney Session Forex Pairs

As far as the Sydney session is concerned, these are the best forex market pairs to trade.

1. AUD/USD (Australian Dollar/US Dollar)

The “Aussie” is naturally one of the most active pairs during the Sydney session, making it an essential addition to your watchlist. It has an average pip movement of 30-40 pips during typical Sydney sessions. And you can get the best out of this pair in the first 2-3 hours after Sydney open (5-8 PM GMT). 

One of the best trading tips for this session is to look for consolidation patterns that form during the first hour, as breakouts from these ranges often indicate the session’s direction.

Why It Works Well:

• Direct correlation with Australia’s economy and RBA policy
• Strong ties to commodity prices, especially gold and iron ore
• Often establishes the day’s directional bias early

Key Trading Considerations:

Pay attention to Australia’s economic releases, which typically occur at 12:30 AM GMT (8:30 PM EST). These data points, including employment figures, CPI, and RBA rate decisions, can create significant movement. The pair also responds to Chinese economic data due to Australia’s strong trading relationship with China.

2. AUD/JPY (Australian Dollar/Japanese Yen)

This cross pair combines two currencies active during the Sydney/Asian sessions, making it particularly dynamic during these hours. The AUDJPY moves on average 40-50 pips in active Sydney sessions. The best time to trade it is at 12 AM GMT when the Tokyo session volatility joins the Sydney session.

When trading this pair, monitor the Nikkei 225 and ASX 200 indices, which often provide directional clues for AUD/JPY movements.

Why It Works Well:

• Serves as a key risk sentiment indicator (rises in risk-on markets, falls in risk-off)
• Less influenced by USD movements than other major pairs
• Strong correlation with global stock markets, predominantly Asian indices

Key Trading Considerations:

AUD/JPY often experiences its most significant moves when there’s a divergence between Australia’s commodity-based economy and Japan’s manufacturing/export economy. This pair offers excellent carry trade opportunities for intermediate traders during stable markets due to the interest rate differential.

3. NZD/USD (New Zealand Dollar/US Dollar)

The “Kiwi” shares many characteristics with AUD/USD but has unique attributes that make it valuable during the Sydney session. During Sydney hours, it moves by an average of 25-35 pips, and the best time to exploit this movement is from 8-10 PM GMT when the early Asian session begins to overlap.

Comparing NZD/USD and AUD/USD charts to identify divergences can give you an edge, as you may spot potential reversal points in either pair.

Why It Works Well:

• Influenced by agricultural commodity prices (dairy in particular)
• Often follows AUD/USD trends but with different momentum
• Lower liquidity can create cleaner price moves

Key Trading Considerations

It’s important to note that NZD/USD can experience sudden spikes during RBNZ announcements and dairy price auctions. The pair also tends to be sensitive to risk sentiment in global markets.

4. EUR/AUD and GBP/AUD (Euro and Pound vs Australian Dollar)

These cross pairs become particularly interesting during the Sydney session as the AUD component is active while the European currencies are in their off-hours. With an average movement of 40-50 pips for EURAUD and 50-60 pips for GBPAUD during the Sydney session, traders who enjoy some level of volatility will fancy these pairs. 

The best time to trade them is during the first 3-4 hours of the Sydney session before European traders begin to enter. We recommend that you watch for range-bound behavior during quiet Sydney sessions. Breakouts often occur as Asian liquidity improves.

Why They Work Well:

• Price action is often driven purely by Australian factors during the early hours
• Technical setups tend to be cleaner than during European hours
• Range-trading opportunities are common

Key Trading Considerations

These pairs offer excellent opportunities when the Australian and European economic cycles diverge. Due to their wider daily ranges, they can also provide better risk-reward scenarios than AUD/USD for certain trade setups.

5. USD/JPY (US Dollar/Japanese Yen)

While not an Australian dollar pair, USD/JPY becomes quite active during the latter part of the Sydney session as Tokyo markets open. It’ll offer you an average of 20-30 pips early in the Sydney session, increasing to 40-50 pips as Tokyo opens. The best time in the Sydney session to trade it is from 11 PM – 2 AM GMT as Tokyo activity increases.

When trading UJ during the Sydney session, look for consolidation in the early hours, followed by directional moves as Tokyo liquidity enters the market.

Why It Works Well:

• Strongly influenced by Japanese institutional flows
• Responds to Asian equity market performance
• Often establishes important support/resistance levels during Asian hours

Key Trading Considerations:

The USD/JPY provides excellent opportunities to practice technical trading as it frequently respects chart patterns and key levels during the Asian session. It’s also worth monitoring US Treasury yields, as they have a strong correlation with USD/JPY movements.

What are the Major Drivers of Volatility in the Sydney Session?

As a Sydney session trader, focus on these key economic releases:

1. Australia (typically 12:30 AM GMT / 8:30 PM EST):

• Employment Change and Unemployment Rate (monthly)
• CPI (quarterly)
• RBA Interest Rate Decisions and Minutes

2. New Zealand (typically 9:45 PM GMT / 5:45 PM EST):

• Employment Change and Unemployment Rate (quarterly)
• CPI (quarterly)
• RBNZ Interest Rate Decisions

3. China (various times):

• Manufacturing PMI
• GDP (quarterly)
• Trade Balance

Top Trading Strategies Specifically for Sydney Session

Let’s take a look at some of the most common trading strategies for the Sydney session:

1. Range Trading Approach

The Sydney session’s lower volatility makes it ideal for range trading strategies, especially for novice forex traders still building their skills. First, you need to identify the high and low of the first hour of the Sydney session. Then, place buy orders near the session low with stops below and sell orders near the session high with stops above. Target exits at 50-75% of the established range.

This strategy works best on AUD/USD and NZD/USD.

2. Asian Breakout Strategy

This strategy capitalizes on the tendency for pairs to establish a range during Sydney hours before breaking out as Tokyo liquidity increases.

To exploit this strategy, draw support and resistance levels based on the first 3 hours of the Sydney trading session. Place pending orders 10-15 pips beyond these levels. When triggered, place your profit target at a distance equal to the width of the prior range and place a stop loss at half the target distance.

This strategy works well on USD/JPY and AUD/JPY.

3. Sydney-London Transition Strategy

This intermediate-level strategy takes advantage of the volatility increase as European traders begin to enter the market near the end of the Sydney session.

Identify the trend direction during the Sydney session. Look for pullbacks or consolidations around 5-6 AM GMT and enter in the direction of the Sydney trend as London liquidity begins to increase. Your target is the previous Sydney session high or low, depending on the direction.

Use this strategy on EUR/AUD and GBP/AUD.

Sydney session is just one of the four major trading sessions. Others are Tokyo session, London session, and New York session. We also have posts that describe the best forex pairs to trade durinthese sessions.

Conclusion

The Sydney session offers novice and intermediate traders a valuable environment to develop their skills with manageable volatility and cleaner technical setups. By focusing on the right currency pairs – primarily those involving AUD, NZD, and JPY – you can take advantage of the unique characteristics of this trading session.

Frequently Asked Questions

These are answers to some of the most commonly asked questions about the pairs to trade during the Sydney session:

What time does the Sydney forex session start and end?

The Sydney session officially begins at 7:00 AM Sydney time (5:00 PM GMT during standard time, 6:00 PM GMT during DST) and ends at 4:00 PM Sydney time (2:00 AM GMT during standard time, 3:00 AM GMT during DST).

Which currency pairs have the highest liquidity during the Sydney session?

AUD/USD, USD/JPY, and AUD/JPY typically have the highest liquidity during the Sydney session, with liquidity increasing substantially once Tokyo markets open.

Can I trade EUR/USD during the Sydney session?

Yes, you can trade EUR/USD during the Sydney session, but be prepared for lower liquidity, tighter ranges, and more technical trading compared to the London and New York sessions when this pair is most active.

How does the Sydney session compare to the Tokyo session?

The Sydney session typically has lower volatility and trading volume compared to the Tokyo session. As the sessions overlap (Sydney opens first, then Tokyo joins), liquidity and volatility tend to increase. The Tokyo session generally sees more institutional activity, particularly in JPY pairs.

Is the Sydney session good for beginners?

The Sydney session can be excellent for beginners due to its typically lower volatility, cleaner technical movements, and reduced market noise. It provides a good environment to practice technical analysis and develop trading discipline without the rapid price movements that can be overwhelming for newcomers.