USD/CAD weakens below 1.3700 ahead of FOMC Minutes

• USD/CAD trades on a softer note around 1.3675 in Wednesday’s early Asian session. 
• Fed’s Powell sees progress on inflation, but he wants to see further evidence before cutting interest rates. 
• Canadian S&P Global Manufacturing PMI remained steady at 49.3 in June, weaker than expected. 

The USD/CAD pair edges lower to 1.3675 during the early Asian trading hours on Wednesday, supported by the weaker US Dollar (USD). Traders will take more cues from the US ADP Employment Change, ISM Services PMI for June, and the FOMC Minutes, which are due later on Wednesday. 

The Federal Reserve (Fed) Chair Jerome Powell turned slightly dovish on Tuesday, which has dragged the Greenback lower. Powell said that the Fed is getting back on the disinflationary path. However, Powell wants to see further evidence before cutting interest rates as the US economy and the labor market remain strong. Meanwhile, Chicago Fed President Austan Goolsbee said on Tuesday that progress on the final chunk of inflation heading towards the Fed’s 2% inflation target will happen faster than many expect.