USD/CAD eyes reversal as China's gold buying impacts dollar sentiment

USD/CAD is trading near 1.4350, showing signs of potential trend reversal as multiple factors weigh on both currencies. The Bank of Canada maintained rates at 2.25%, meeting market expectations but signaling caution about future cuts amid persistent inflation concerns. Meanwhile, China's 15th consecutive month of gold purchases, reaching 74.19 million troy ounces valued at $369.58 billion, reflects ongoing de-dollarization efforts that could pressure USD broadly. The appointment of Kevin Warsh as a potential Fed official has provided temporary USD support, given his hawkish policy stance. Technical indicators suggest USD/CAD is testing key resistance at 1.4380, with a break above potentially targeting 1.4450. However, support at 1.4300 remains crucial, as failure to hold could accelerate the reversal toward 1.4200. Traders should monitor upcoming US employment data and any shifts in BoC rhetoric for directional clarity.