In the early Asian session on Wednesday, the USD/CAD pair is consolidating near 1.3635. Federal Reserve (Fed) Chair Jerome Powell mentioned that “more good data” could lead to rate cuts, which has raised expectations for a possible Fed rate cut in September. The recent weaker Canadian employment data has also fueled speculation about a rate cut by the Bank of Canada (BoC). The US Dollar (USD) may face selling pressure in the near term due to the expectation of a Fed rate cut, while the Canadian Dollar (CAD) could be supported by a rebound in oil prices. Oil prices have declined for the third consecutive day, but a potential increase could benefit the CAD as Canada is a major crude oil exporter to the United States. Key factors influencing the CAD include interest rates set by the BoC, the price of oil, Canada’s economy, inflation, and trade balance. The BoC plays a significant role in determining the CAD value through interest rate adjustments. Higher oil prices tend to strengthen the CAD, while inflation and macroeconomic data releases can also impact the currency.