USD/CAD retraces from losses, trades higher around 1.3560

• USD/CAD experienced losses due to downbeat US economic data.
• Investors seek more signals on monetary policy as Fed's Powell mentioned that the next interest rate hike will be data-driven.
• The rise in Crude oil prices exerted downward pressure on the USD/CAD pair.

USD/CAD retraces from the previous day’s losses, trading around 1.3560 during the Asian session on Wednesday. The pair experienced a downward pressure due to the pullback in the US Dollar (USD), following the downbeat United States (US) economic data released on Tuesday.

As said, Consumer Confidence for August declined to 106.1 from the previous 114.0, lower than the projected reading of 116.0. Additionally, the JOLTS Job Openings displayed a reduction in July, reported 8.827M, swinging from the previous 9.165M. The index was expected to rise to 9.465M.

US Federal Reserve (Fed) Chairman Jerome Powell’s statement at the Jackson Hole Symposium indicated that the Fed's decision on the next interest rate hike will be driven by economic data. Market participants are now awaiting more information to better understand the timing and magnitude of potential interest rate adjustments.

The US Dollar Index (DXY) hovers around 103.50 at the time of writing. The retreating US Treasury yields contributed to weakening the Greenback, which measures the performance of the US Dollar (USD) against the six other major currencies.

Additionally, the rise in Crude oil prices, contributed support to the Canadian Dollar (CAD) against the buck as Canada is one of the largest Oil exporters to the US. Western Texas Intermediate (WTI) trades near $81.35 by the press time.

Investors will like to monitor the upcoming data releases, seeking fresh impetus on the economic outlook of both countries. US Core Personal Consumption Expenditures (PCE) Index, weekly Jobless Claims, and Nonfarm Payrolls will be in focus during the week. On Canada’s docket, Gross Domestic Product (GDP) is due to be released on Friday.