USD/CAD edged higher to trade around 1.3805 in early Asian trading on Wednesday. The U.S. dollar (USD) strengthened against the Canadian dollar (CAD) on strong U.S. consumer confidence data. Market focus shifted to the FOMC minutes due later on Wednesday.

The Conference Board's consumer confidence index rose to 98.0 in May from 86.0 (revised from 85.7). The reading indicated growing optimism among U.S. consumers, driving broad dollar strength. Meanwhile, U.S. durable goods orders fell 6.3% in April after rising 7.6% (revised from 9.2%), the U.S. Census Bureau showed on Tuesday. The data was better than the expected 7.9% decline.

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said on Tuesday that officials should keep interest rates steady until there is a clearer picture of how higher tariffs affect inflation, and warned against "ignoring" the impact of such supply price shocks.

Additionally, the decline in crude oil prices weakened the commodity-linked Canadian dollar and created a tailwind for the currency pair. Notably, Canada is the largest oil exporter to the United States and lower crude oil prices tend to have a negative impact on the value of the Canadian dollar.

Traders will be closely watching the upcoming Canadian first quarter gross domestic product (GDP) report, which is expected to decline to 1.7% year-on-year, down from 2.6%. However, an unexpected upside in the GDP data could boost the Canadian dollar in the short term.