CAD: Trade Surplus Bolsters Cautious Outlook Amid Global Headwinds

The CAD's outlook is cautiously optimistic, buoyed by Canada's $4.2 billion trade surplus in August, largely due to higher energy prices. This provides domestic support amid global headwinds. However, the CAD remains sensitive to global risk, commodity prices, and monetary policy divergence, particularly with the hawkish Fed. USD/CAD is expected to trade within a range, with domestic strength offering some insulation but external risks limiting significant appreciation.