What Is the Sydney Session in Forex?

The Sydney session is the first major trading session to open each new forex trading week. As the global forex market runs essentially 24 hours from Sunday evening (GMT) to Friday evening (GMT), the Sydney session is where the new week begins for most traders, opening on Monday morning Sydney local time. Sydney session activity is most concentrated in AUD and NZD pairs.

This article explains what the Sydney session is, when it occurs in different time zones, why it matters for forex traders, which currency pairs are most affected, and how it overlaps with the Tokyo session that follows.

What Is the Sydney Session?

The Sydney session refers to the period during which the Sydney financial centre is most active. By convention, the Sydney forex session opens at 07:00 Sydney local time and runs to 16:00 Sydney local time, covering the main business hours of Australian banks and trading firms.

Sydney is the smallest of the four major forex centres (London, New York, Tokyo, Sydney) by volume. Sydney's significance comes not from its absolute volume but from its position in the global trading clock. As the first major centre to open on Monday morning Asia-Pacific time, Sydney is where the new trading week effectively begins.

Wellington (New Zealand) opens slightly earlier than Sydney each Monday, but it is small enough that for most purposes, Sydney is considered the first major session of the trading week.

Sydney Session Hours and Time Zones

Sydney observes daylight saving time. Australian DST applies from approximately early October to early April (the Australian summer). During DST, Sydney is on Australian Eastern Daylight Time (AEDT, UTC+11). During the rest of the year, Sydney is on Australian Eastern Standard Time (AEST, UTC+10).

The Sydney session opens at 07:00 Sydney local time, which translates as follows:

During AEDT (October to April, Southern Hemisphere summer): 07:00 AEDT equals 20:00 GMT previous day.

During AEST (April to October, Southern Hemisphere winter): 07:00 AEST equals 21:00 GMT previous day.

For traders in other time zones, here are conversions for several common locations, with the AEDT (summer) value listed first:

In London: the relationship varies because UK and Australian DST schedules don't align perfectly. As a rough guide, Sydney open is around 20:00-22:00 London local time previous day.

In South Africa (SAST, UTC+2, no daylight saving): Sydney open at 22:00 SAST previous day (during AEDT) or 23:00 SAST previous day (during AEST).

In Singapore (SGT, UTC+8, no daylight saving): Sydney open at 04:00 SGT (during AEDT) or 05:00 SGT (during AEST).

In the UAE and the Gulf (GST, UTC+4, no daylight saving): Sydney open at 00:00 GST (during AEDT) or 01:00 GST (during AEST).

In Tokyo (JST, UTC+9, no daylight saving): Sydney open at 05:00 JST (during AEDT) or 06:00 JST (during AEST).

In New York: highly variable because of both US and Australian DST schedules. Verify via a current time converter for any given date.

Why the Sydney Session Matters

Three reasons make the Sydney session important for forex traders.

The first is the start of the trading week. The Sydney open marks the effective start of the global forex trading week on Monday morning Asia-Pacific time. Weekend news, gap moves, and any significant developments during the closed Saturday and Sunday period typically manifest first during the Sydney session.

The second is AUD and NZD activity. AUD pairs (AUDUSD, AUDJPY, AUDNZD) and NZD pairs (NZDUSD, NZDJPY) trade most actively during the Sydney and Tokyo sessions. Australian and New Zealand institutions are the most natural counterparties for these pairs and are most active during Sydney hours.

The third is the link to commodity markets. Australia is a major commodity exporter (iron ore, coal, gold, agricultural products), and AUD is correlated with commodity prices. AUD pair movements during the Sydney session often reflect overnight commodity market shifts and Asian commodity demand patterns.

Currency Pairs Most Affected by the Sydney Session

AUD pairs see the strongest activity during the Sydney session. AUDUSD, AUDJPY, AUDNZD, EURAUD, GBPAUD, and AUDCAD all typically experience their most concentrated activity during Sydney hours.

NZD pairs are similarly active. NZDUSD, NZDJPY, AUDNZD, EURNZD, GBPNZD, and NZDCAD all see notable Sydney-session flow.

JPY pairs trade actively during the Sydney session as well, particularly in the overlap with the early Tokyo session.

Major USD pairs (EURUSD, GBPUSD, USDCAD, USDCHF) trade during the Sydney session but typically with thinner liquidity and wider spreads than during the European and American sessions.

Spreads are variable and are typically higher than minimum figures shown. Spreads on AUD and NZD pairs are typically tighter during Sydney hours than during their off-hours.

The Sydney / Tokyo Overlap

The Sydney session opens about three to four hours before the Tokyo session (depending on Australian DST). For roughly the latter half of the Sydney session, Tokyo is also active.

The Sydney / Tokyo overlap typically runs from the Tokyo open (09:00 JST = 00:00 GMT) to the Sydney close (16:00 Sydney local time). The exact hours of overlap depend on Australian DST status.

This overlap is when liquidity in JPY pairs and Asia-Pacific crosses is highest within the Asian session. AUDJPY, NZDJPY, and similar pairs typically see their most active period during the Sydney / Tokyo overlap.

Economic Data Around the Sydney Session

The Sydney session coincides with releases of important Australian and New Zealand economic data. Common release times include:

Reserve Bank of Australia (RBA) rate decisions: typically at 14:30 Sydney local time on the first Tuesday of most months (with exceptions).

Australian CPI, GDP, employment, retail sales: typically released around 11:30 Sydney local time, mid-morning during the Sydney session.

Reserve Bank of New Zealand (RBNZ) rate decisions: typically at 14:00 Wellington local time (one hour ahead of Sydney during NZ DST, two hours ahead during NZ standard time).

New Zealand CPI, GDP, employment data: typically released early in the Sydney session, often around 10:45 New Zealand local time.

These releases can cause sharp moves in AUD pairs and NZD pairs. Traders often watch the economic calendar for the upcoming release schedule. MT5 includes a built-in economic calendar in the Toolbox > Calendar tab.

Considerations When Trading the Sydney Session

The Sydney session typically has lower volatility than the other major forex sessions. Volume is concentrated in AUD and NZD pairs, with relatively thin liquidity in the majors.

The opening hours of the Sydney session on Monday morning (Asia-Pacific time) often see gap moves from the weekend close. Gap moves can be significant for pairs involving currencies affected by weekend news. Position management around the Sunday-Monday transition requires care.

Spreads on major pairs are typically wider during Sydney hours than during the London or New York sessions. Spreads on AUD and NZD pairs are typically tighter during Sydney hours than during their off-hours. Spreads are variable and are typically higher than minimum figures shown.

Orders are executed at the best available market price, which may result in positive or negative slippage. Demo accounts often execute instantly and may not fully replicate live slippage conditions.

Leverage on each instrument is subject to change depending on market conditions and applicable regulatory requirements.

Practical Considerations

For traders based outside Asia-Pacific, the Sydney session falls at inconvenient hours. UK traders see the Sydney open in the late evening previous day (around 20:00-22:00 London local time); US East Coast traders see it in the afternoon previous day (around 15:00-17:00 local time).

The Sydney session is often quieter than the other major sessions, making it less suitable for high-frequency or scalping approaches that rely on tight spreads in majors. It can be more suitable for AUD and NZD-focused traders or for traders watching commodity-related flows.

The Sydney session is also where the trading week begins. Monday morning Asia-Pacific time often sees the first liquid trading after the weekend close. Traders holding open positions over the weekend may see significant gaps at the Monday open if material news has emerged.

For monitoring the Sydney session and surrounding market activity, the MT5 economic calendar (Toolbox > Calendar) shows scheduled releases by time and importance. Both MT4 and MT5 chart timeframes from M1 up to MN1 are available for analysing intraday and longer-term patterns around the session.

Trading at TIOmarkets

TIOmarkets offers MetaTrader 4 and MetaTrader 5 on desktop, web, and mobile, across four account types. The Standard account is created automatically on registration with a minimum deposit of $20 or currency equivalent. The Raw and VIP Black accounts are opened separately through the client area. The Nano account is MT5 only with a $20 minimum deposit, USD only. Hedging is supported on all accounts. A swap-free Islamic account is available; contact TIOmarkets for eligibility and instrument requirements. Copy trading is available on both MT4 and MT5.

Orders are executed at the best available market price, which may result in positive or negative slippage. Demo accounts often execute instantly and may not fully replicate live slippage conditions. Spreads are variable and are typically higher than minimum figures shown. Leverage on each instrument is subject to change depending on market conditions and applicable regulatory requirements. You can review the full list of account types on the TIOmarkets accounts page.