Sydney open: thin quotes and spreads that look wrong

[Shadow Trader]

When the trading week starts, or when Sydney comes online after a quiet period, liquidity is thin and quotes can behave oddly. A quote that looks like a one-pip spread on a normal day might be four or five pips, and a pair like AUDNZD or NZDJPY can flicker with small bursts of volatility that vanish.

For a scalper, the main hazard is mistaking noise for signal. A handful of small orders can move price a few pips in either direction, and indicators based on price alone will paint patterns that mean very little.

The sensible approach is to use the first hour as an observation window. Watch how spreads settle. Notice which pairs seem to hold a range and which jump around. Only start trading once quotes look stable, and size down compared with London hours.

Some traders skip this window completely, and it is a perfectly reasonable choice. A strategy that needs tight spreads and good fills often has no business trading in the thinnest part of the day.

What time do spreads on your main pairs feel reliable after the Sydney open?