USD/CAD rebounds above 1.3800, FOMC Minutes in focus

• USD/CAD trades with mild gains around 1.3805 in Wednesday's early Asian session. 
• The US CB Consumer Confidence Index improved to 98.0 in May. 
• Traders brace for the Canadian Q1 GDP report due on Friday, which is estimated to decline to 1.7% YoY from 2.6%.

The USD/CAD pair posts modest gains near 1.3805 during the early Asian session on Wednesday.  The US Dollar (USD) strengthens against the Canadian Dollar (CAD) after the stronger US Consumer Confidence data. The attention is shifted to the FOMC Minutes, which are due later on Wednesday. 

The Conference Board's Consumer Confidence Index rose to 98.0 in May from 86.0 (revised from 85.7). This reading suggested a growing optimism among US consumers, which lifts the USD broadly. Meanwhile, US Durable Goods Orders declined by 6.3% in April versus a 7.6% increase prior (revised from 9.2%),  the US Census Bureau showed on Tuesday. This figure came in better than the estimated decrease of 7.9%.

Federal Reserve (Fed) Bank of Minneapolis President Neel Kashkari said on Tuesday that the officials should keep interest rates steady until there is more clarity on how higher tariffs affect inflation, warning against "looking through" the impact of such supply price shocks.

Additionally, a decline in Crude Oil prices undermines the commodity-linked Loonie and creates a tailwind for the pair. It's worth noting that Canada is the largest oil exporter to the US, and lower crude oil prices tend to have a negative impact on the CAD value. 

Traders will keep an eye on the release of the Canadian Gross Domestic Product (GDP) report for the first quarter (Q1), which is estimated to decline to 1.7% YoY from 2.6%. Nonetheless, a surprise upside in the GDP figure could boost the CAD in the near term.