USD/CAD struggles to find acceptance above 1.4300 amid modest USD weakness

• USD/CAD attracts some buyers and snaps a three-day losing streak to over a one-month low.
• Concerns about the US-Canada trade war and retreating Crude Oil prices undermine the Loonie.
• A modest USD pullback from a multi-week high caps the pair ahead of the US macro data.  

The USD/CAD pair builds on the previous day's modest bounce from the 1.4235 area, or over a one-month low, and gains some follow-through positive traction on Thursday. Spot prices stick to intraday gains through the first half of the European session and for now, seem to have snapped a three-day losing streak, though bulls seem to struggle to find acceptance above the 1.4300 mark. 

The Canadian Dollar (USD) weakens in reaction to US President Donald Trump's announcement to impose 25% tariffs on auto imports, raising the risk of a further escalation of the US-Canada trade war. Furthermore, the uncertainty over Trump's reciprocal tariffs on April 2 prompts some profit-taking around Crude Oil prices, especially after the recent run-up to a three-and-half-week high touched on Wednesday. This is seen as another factor undermining the commodity-linked Loonie and acting as a tailwind for the USD/CAD pair. 

Meanwhile, the US Dollar (USD) struggles to capitalize on Wednesday's better-than-expected Durable Goods Orders data-led gains and retreats from a three-week top. The Federal Reserve revised its growth outlook downward amid the uncertainty over the impact of Trump's trade policies and signaled that it would deliver two 25 basis points interest rate cuts by the end of this year. This, in turn, keeps a lid on the recent USD positive move witnessed over the past two weeks or so and keeps a lid on the USD/CAD pair. 

Moving ahead, traders now look forward to the US economic docket - featuring the release of the final US Q4 GDP print, the usual Weekly Initial Jobless Claims, and Pending Home Sales. This, along with speeches from influential FOMC members, could drive the USD. Apart from this, Oil price dynamics might produce short-term trading opportunities around the USD/CAD pair. The focus, however, remains on the US Personal Consumption Expenditure (PCE) Price Index, which should provide cues about the Fed's rate-cut path.