• USD/CAD trades with mild gains around 1.3740 in Tuesday’s Asian session. 
• Traders await the US PPI data on Tuesday for fresh impetus. 
• Higher crude oil prices and hopes of a Fed rate cut in September might underpin the CAD in the near term.  

The USD/CAD pair trades on a stronger note near 1.3740 during the Asian session on Tuesday. Traders prefer to wait on the sidelines ahead of key US data releases. The US Producer Price Index (PPI) will take centre stage later in the day, along with the speech by the Federal Reserve’s (Fed) Raphael W. Bostic. 

The Greenback trades in a consolidative theme amid a flattish mood in global markets. Traders will take more cues from the US PPI data on Tuesday. The PPI is estimated to ease to 2.3% YoY in July from 2.6%, while the Core PPI is forecasted to drop to 2.7% YoY in July from the previous reading of 3.0%. This report could provide some insight about the US rate. 

Analysts from BBH Global Currency Strategy noted that a 50 basis points (bps) rate cut by the Fed is possible but will fully depend on the data, with nearly 55% odds priced in now. The softer key US economic data this week might trigger the chance that the Fed will cut rates more aggressively in September, which might drag the USD lower against its rivals