The foreign exchange market, or forex, is the largest financial market in the world, with an average daily turnover of US$9.6 trillion. Unlike a stock exchange like the NZX, forex is a decentralised market with no single physical location. Instead, currencies are traded electronically between participants across the globe and around the clock.
Having this type of set-up means there are fewer restrictions on when you can trade. While the NZX operates during set business hours, forex market hours span from Monday morning to Saturday morning (New Zealand time), giving traders the freedom to participate in any session that suits them.
For traders using CFDs, knowing about forex trading hours is very important. As forex CFDs allow you to speculate on price movements without owning the underlying currency, you can potentially take advantage of opportunities across multiple sessions, whether during the quiet of the Wellington open or the bustle of the London/New York overlap.
Let’s break down the major session times and the best times to trade for Kiwis. If you’re new to the market, our guide is the perfect starting point.
Forex trading hours around the world
The forex market is open 24 hours a day, five days a week, which is possible because the market operates across multiple time zones. As one major financial centre closes for the day, another opens, thereby creating a continuous cycle of trading activity. Trading begins with the Wellington session on Monday morning and continues through overlapping sessions until the New York session closes on Saturday morning (NZST). The cycle repeats weekly.
Unlike stock markets, where trading is confined to exchange hours, the decentralised nature of forex means there’s no opening or closing bell. Instead, activity rises and falls as different regions come online. As a forex trader, you have the flexibility to choose when and how you participate.
There are four major trading sessions, each centred on a key financial hub:
Sydney (Asia-Pacific): Opens first each morning for local traders, marking the official start of the global trading day. The Sydney and Wellington sessions overlap for 3 hours of the day, between 10am and 1pm NZST.
Tokyo: Overlaps with Sydney and adds trading volume, especially in NZD, JPY and AUD pairs.
London: The most active session by volume, opening during the New Zealand evening and accounting for a large share of daily forex turnover.
New York: Overlaps with London during its opening hours, and during NZ’s overnight hours, becoming the highest-volume window of the day.
When does the forex market open in New Zealand?
For traders in New Zealand, the forex market open time is 5am NZST on Monday, when the Wellington session begins, and closes at 8am NZST on Saturday, when the New York session closes for the weekend.
As the forex market opens in New Zealand before most other global financial centres, local traders are among the first to respond to any news or developments that might have happened over the weekend. The benefit here is that being first can present both opportunities and risks, especially if any major events occurred while markets were closed.
The Wellington and Sydney sessions are usually the quietest of the four major sessions, with lower trading volumes compared to London and New York. That being said, they mark the start of the global trading week and can see increased activity if important economic news has emerged over the weekend. Spreads could also be wider during these initial Monday morning hours, thanks to the lower liquidity.
The forex market is closed on weekends. Liquidity can also drop during major public holidays in places like London, New York and Tokyo, even if the market technically stays open. It’s worth checking an economic calendar before trading to be aware of any upcoming holidays that could impact market conditions.
Forex session times
Forex session times vary depending on where a financial centre is located and whether daylight savings is in effect. Every trading session has its own characteristics and attracts activity in different currency pairs. Below is a breakdown of each session’s approximate open and close times in NZST.
Wellington session
Sydney session
Open: 10am NZST, 11am NZDT
Close: 6pm NZST, 7pm NZDT
Most active pairs: AUD/USD, AUD/NZD, NZD/USD. Pairs involving the Australian and New Zealand dollars tend to see the most movement during this window.
The APAC sessions are the quietest major sessions, with relatively low liquidity compared to London or New York. It sets the tone for the trading day and can react to weekend news events. As volumes are lower, spreads on some pairs will be wider during this session.
Tokyo (Asian session)
Open: Approximately 11am NZST, 12pm NZDT.
Close: Approximately 8pm NZST, 9pm NZDT.
Most active pairs: USD/JPY, AUD/JPY, EUR/USD. Cross-yen pairs are very active during this session.
Tokyo overlaps with the Sydney session and adds plenty of trading volume, particularly in Asian currencies. The Tokyo session is a big driver of activity in the yen and sets the trend for the rest of the Asian trading day. Economic data releases from Japan, China and Australia usually move markets during these hours.
London (European session)
Open: 7pm NZST, 8pm NZDT
Close: 3am NZST (next day), 4am NZDT
Most active pairs: EUR/USD, GBP/USD, EUR/GBP, USD/CHF. European crosses and sterling pairs are active here.
This is the highest-volume session, accounting for a massive share of daily forex turnover. London is seen as the global centre of forex trading, and its opening hours bring a major increase in activity and tighter spreads on major pairs. The London session forex time in New Zealand falls in the evening for most local traders, which suits people who want to trade after standard business hours.
New York (North American session)
Open: 12am NZST, 1am NZDT
Close: 8am NZST (next day), 9am NZDT
Most active pairs: EUR/USD, GBP/USD, USD/JPY, USD/CAD. Dollar-denominated pairs dominate activity during the New York session.
New York overlaps with the London session during its first few hours. The result? The single most active trading window of the day. US economic data releases, such as non-farm payrolls, CPI figures and Federal Reserve announcements, drive up volatility during this session. For Kiwi traders, this session falls overnight, so take planning seriously, including the use of stop-losses to manage your positions while sleeping.
Best times to trade forex in New Zealand
The best time to trade forex in New Zealand usually happens during session overlaps – periods when two major sessions are open at the same time. During these windows, more people are active, trading volumes rise, and spreads can narrow, which might give you more opportunities.
The three biggest overlap windows for traders in New Zealand are:
Wellington/Sydney overlap: 10am to 2pm NZST. This window represents the official kickoff of the global trading day. It provides steady liquidity and steady movement for regional currencies, making it an excellent time to trade pairs like AUD/NZD, NZD/USD, and AUD/USD right from the morning.
Sydney/Tokyo overlap: 11am to 6pm NZST. It’s a convenient window for local traders, with moderate activity and a focus on NZD, AUD and JPY pairs. It falls during standard daytime hours, making it the most accessible overlap for people who trade during business hours.
London/New York overlap: Approximately 12am to 3am NZST. Usually, the highest-volume trading window of the day, with the tightest spreads on major pairs like EUR/USD and GBP/USD. However, because it falls overnight for New Zealanders, traders should adjust their schedule or use limit and stop orders to manage their positions.
It’s also worth remembering that individual sessions can uncover opportunities outside of overlaps. The opening hour of the London session, for example, usually sees a surge in volatility as European traders respond to developments from the Asian trading day. By the same token, US data releases during the New York session can cause sharp price movements.
Keep in mind that session overlaps aren’t the only consideration here. Economic data releases, central bank announcements, geopolitical events and more can all drive big price movements at any hour. Kiwi traders should also be aware that domestic data like interest rate decisions by the RBNZ and employment figures are most often released during the Wellington session and can generate notable activity in NZD pairs.
What are the most volatile currency pairs?
Volatility refers to how much a currency pair’s price moves over a given period. Higher volatility means larger potential price swings in either direction. Knowing about how volatility might affect your positions is important for managing risk and picking the right pair for your trading approach.
Currency pairs are grouped into three categories – major, minor and exotic – and each one displays different levels of volatility:
Major pairs (e.g. NZD/USD, EUR/USD, GBP/USD, AUD/USD) usually have lower volatility because they’re the most heavily traded and have the deepest liquidity. High liquidity means large orders are less likely to cause big price movements.
Minor pairs (e.g. EUR/GBP, AUD/JPY) can endure moderate volatility, especially around economic data releases from the countries involved. As they’re less liquid than majors, price movements can be somewhat larger.
Exotic pairs (e.g. USD/TRY, USD/ZAR) show the highest volatility because of lower liquidity and greater sensitivity to political and economic developments in emerging markets. Spreads on exotic pairs are also generally wider.
Major pairs involving the US dollar tend to be most active during the London/New York overlap, where liquidity is highest. Volatility is neither inherently good nor bad – it’s a characteristic that you should understand and factor into your risk-management approach. Pairs with higher volatility might present more opportunities, but also come saddled with greater risks per trade.
Trade the forex market hours in New Zealand with CMC Markets
With CMC Markets, you can enjoy forex CFD trading across major, minor and exotic currency pairs, with access to all four major trading sessions. Explore our range of over 300 forex pairs on the CMC Markets forex page or start practising today with a demo account.