The Asian Session refers to the trading session in the foreign exchange market that occurs during the daytime hours in Asia. It is one of the three major trading sessions alongside the European and North American sessions. The Asian Session typically starts around 23:00 GMT and ends around 08:00 GMT, overlapping with the European Session for a few hours.
Characteristics of the Asian Session:
Market Activity: The Asian Session is known for lower trading volumes compared to the European and North American sessions, as major financial centers like Tokyo, Hong Kong, Singapore, and Sydney are active during this time.
Currency Pairs: During the Asian Session, currency pairs involving the Japanese Yen (JPY), Australian Dollar (AUD), and New Zealand Dollar (NZD) often experience higher volatility due to the active participation of their respective markets.
Influence of Economic Data: Economic data releases from Asia, such as Japan's GDP figures, China's manufacturing PMI, and Australia's employment data, can significantly impact currency prices during the Asian Session.
Overlap with Other Sessions: The latter part of the Asian Session overlaps with the European Session, leading to increased trading activity and volatility as market participants from both regions are active simultaneously.
Understanding the dynamics of the Asian Session is essential for forex traders, as it can provide valuable insights into market sentiment and potential trading opportunities, especially for currency pairs involving Asian currencies.
