USD/CAD flat lines near 1.4350 as traders await fresh catalysts

• USD/CAD trades flat near 1.4355 in Tuesday's early Asian session. 
• Investors awaited fresh catalysts for US interest rate policies and potential tariffs under Donald Trump.
• Higher crude oil prices might lift the commodity-linked Loonie, but a cautious Fed stance might cap its upside.

The USD/CAD pair holds steady around 1.4355 on Tuesday during the early Asian trading hours. It's likely to be a quiet trading session in a holiday-shortened and thin-trading-volume week. Later on Friday, the US December ISM Manufacturing Purchasing Managers Index (PMI) will be in the spotlight. 

The Federal Reserve (Fed) lowered interest rates by 25 basis points (bps) at its December meeting, bringing the target interest rate range to 4.25% and 4.5%. The Summary of Economic Projections (SEP) revealed that the Fed officials penciled in just two 25 bps cuts in 2025, down from the four projected in September. The anticipation of fewer cuts in 2025 is likely to lift the Greenback against the Canadian Dollar (CAD) in the near term. 

Markets brace for major US policy shifts, including potential tariffs, deregulation, and tax changes, in 2025 once president-elect Donald Trump returns to the White House in January. Last month, Trump said he planned to impose 25% tariffs against Canada and Mexico unless the countries reduce the flow of migrants and fentanyl into the United States. The concerns about the risks of imposing new trade tariffs might weigh on the Loonie and create a tailwind for USD/CAD. 

However, the rebound in crude oil prices might help limit the CAD's losses. It's worth noting that Canada is the largest oil exporter to the United States (US), and higher crude oil prices tend to have a positive impact on the CAD value.