USD/CAD weakens to near 1.4300 as Trump delays tariffs policy

• USD/CAD softens to around 1.4300 in Tuesday's early Asian session.
• Trump did not impose tariffs on US trading partners on his first day in the White House.
• BoC's latest Business Outlook Survey suggested that the overall economic sentiment remains subdued.

The USD/CAD pair remains on the defensive around 1.4300 during the early Asian session on Tuesday, pressured by the weakening of the US Dollar (USD). The Greenback trades in choppy trading as traders await further details on President-elect Donald Trump's economic plans, including tariff policies. 

Bloomberg reported on Monday that Trump will not announce tariffs immediately after his inauguration on Monday but will call federal agencies to study tariff policy and the United States' trade ties with Canada, Mexico, and China. The USD faced some selling pressure following this report. 

The US Federal Reserve (Fed) is anticipated to hold its benchmark overnight rate steady in the 4.25%-4.50% range at its January meeting. However, investors expect Trump's policies could fuel inflation pressures, which may only allow the Fed to cut rates once more. This, in turn, might help limit the USD's losses in the near term. 

On the Loonie front, the Bank of Canada's (BoC) Business Outlook Survey showed Canadian firms see improved demand and sales in the coming year, fuelled by rate cuts, but are concerned about the potential risks from promised US trade policies from Trump's administration. Meanwhile, the decline in crude oil prices might drag the commodity-linked Canadian Dollar (CAD) lower. Canada is the largest oil exporter to the US, and lower crude oil prices tend to have a negative impact on the CAD value.