During the 24 hours period currency pairs in Forex market experience several hours, when the volume of trades is the highest and so is the pip movement. USDDuring the week the most active Forex trading days are: Tuesday, Wednesday and Thursday. Aud usd fundamental analysis forex are days when traders are mostly watching and analyzing the market and predict further price moves.
Fridays are traded approximately till noon, after that all actions slow down and almost freeze before the actual market closing at 5 pm EST. This is a powerful knowledge for those who trade more than one currency pair. It helps to hedge, diversify or double profitable positions. A correlation of zero means no relation between currency pairs exists. Information about current correlation coefficients can be found here: Currency Correlations Table. How a trader can use this information?
A very simple use is avoiding trades that cancel each other. However, there is a strategy of hedging one currency pair with another. For example, a trader has opened long positions on both currency pairs. Economic news releases often evoke strong moves in the currency market, creating a lot of short-term trading opportunities for breakout traders. However, not all news reports are tradable. Some of them may not have significant effect on the market while others do. So, before deciding on trading the upcoming news traders may want to find out whether the news is worth trading or not.