What Are the Most Active Trading Hours for AUD/USD?
Learn when the market is active for this popular currency pair to increase your forex trading possibilities.
Published November 20, 2024.
The Australian to US dollar pairing (AUD/USD), or the “Aussie,” is a popular forex pair preferred by many traders for its liquidity, link to global economic trends, and relatively attractive spreads. It represents approximately 5% of the entire forex market, with the Australian dollar as the sixth most traded currency in the world in 2023.
» Explore these forex day trading strategies
Most Active Trading Hours for AUD/USD
While technically tradable 24 hours a day, the most common time to trade the AUD/USD pair is when it is more volatile. The AUD/USD trading session hours are generally busiest between 19:00 and 04:30 GMT. This window covers late US trading hours and the Asia-Pacific’s mid-point sessions.
» Find out what is volatility in forex trading
Why Is AUD/USD Popular?
The AUD/USD trading pair reacts quickly to changing central bank policies and economic calendar data. It is also perceived as a growth-linked or risk-linked currency pair, as AUD could be very sensitive to commodity price movement owing to Australia’s large volumes of raw material exports.
» Explore these major vs. minor currency pairs and these cross-currency pairs
The key market participants for trading the AUD/USD pair are financial institutions, banks, commodity trading companies, retail traders, money changers, and hedge funds, popular because of the following reasons:
- Liquidity: High liquidity facilitates ease of trade, lower costs, less slippage, and a buffer against external shocks.
- Tight Spreads: The pair could have narrow spreads for retail traders, reducing the overall cost of trading.
- 24-hour Trading: Despite having the most optimal trading times, the AUD/USD pair is technically tradable 24 hours daily from Monday to Friday.
- Relatively Easy to Predict: The AUD/USD pair could be relatively easy to predict, given Australia's low involvement in geopolitical disputes.
Note: Fortrade offers the ability to trade the price changes of instruments with CFDs and NOT to buy/sell ownership of the instrument itself. All the information in this blog is purely educational and should not be considered as advice. Your decisions should be made on your individual circumstances.
» Discover other popular forex majors to trade this year
Related Articles
Arjel Vajvoda
The Ins and Outs of Trading Crude Oil Futures
Arjel Vajvoda