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The AUD/USD currency pair, also known as the Aussie, is one of the most traded pairs in the forex market. As a result, traders are constantly seeking to understand when the pair is most active to gain an edge in their trading strategies. This article will explore the trading hours of the Australian and US markets and highlight when the AUD/USD is most active.
Exploring the Trading Hours of the Australian and US Markets
The AUD/USD currency pair is composed of the Australian dollar and the US dollar. The pair is affected by various economic indicators, including interest rates, economic growth, and commodity prices. As such, understanding the trading hours of the Australian and US markets is critical for any trader looking to trade the AUD/USD pair successfully.
Australian Market Trading Hours
The Australian market operates on a 24-hour cycle, which means that it opens on Sunday at 5 pm EST and closes on Friday at 5 pm EST. However, the market is only active during certain hours of the day, and traders need to be aware of these hours to make informed trading decisions.
The most active hours in the Australian market occur between 7 pm and 2 am EST. During this time, there is a significant overlap with the Asian markets, including Japan, China, and Singapore. As a result, the AUD/USD pair experiences high volatility due to increased trading volume.
It is worth noting that the Australian Reserve Bank’s monetary policy announcements often occur during the early hours of the Australian market. These announcements can cause significant fluctuations in the value of the AUD/USD pair, making it an important time for traders to pay attention to the market.
US Market Trading Hours
The US market operates on a 24-hour cycle as well, but its operating hours differ from those of the Australian market. The US market opens on Sunday at 5 pm EST and closes on Friday at 5 pm EST, but it is only active during specific hours of the day.
The most active hours in the US market occur between 8 am and 12 pm EST, which is when the New York and London markets overlap. During this time, the AUD/USD pair experiences high volatility due to increased trading volume.
It is worth noting that several economic indicators, including the non-farm payroll report, consumer price index, and gross domestic product, are released during the US market’s operating hours. These releases can cause significant fluctuations in the value of the AUD/USD pair, making it an important time for traders to pay attention to the market.
When is the AUD/USD Most Active?
The AUD/USD pair is most active during the following times:
1. Between 7 pm and 2 am EST: This is when the Australian market is most active, and there is a significant overlap with the Asian markets. As a result, the AUD/USD pair experiences high volatility due to increased trading volume.
2. Between 8 am and 12 pm EST: This is when the New York and London markets overlap, and the US market is most active. During this time, the AUD/USD pair experiences high volatility due to increased trading volume.
3. When economic indicators are released: The release of key economic indicators can cause significant fluctuations in the value of the AUD/USD pair. Traders should pay close attention to these releases and adjust their trading strategies accordingly.
What is the best day to trade AUD/USD?
All in all, Tuesday, Wednesday and Thursday are the best days for Forex trading due to higher volatility. During the middle of the week, the currency market sees the most trading action.
Conclusion
In conclusion, understanding the trading hours of the Australian and US markets is critical for any trader looking to trade the AUD/USD pair successfully. The most active hours in the Australian market occur between 7 pm and 2 am EST, while the most active hours in the US market occur between 8 am and 12 pm EST. Additionally, traders should pay close attention to the release of key economic indicators, as these can cause significant fluctuations in the value of the AUD/USD pair. By monitoring these times and adjusting their trading strategies accordingly, traders can gain an edge in trading the AUD/USD pair.
