The dollar slipped on Tuesday, erasing earlier gains after China's statistics bureau said the country should speed up diversifying its foreign exchange reserves because the U.S. currency was at risk of declining.

The comments from the National Bureau of Statistics, which is not responsible for managing the country's world-leading $941 billion stockpile of foreign reserves, had only a slight impact as market players looked ahead to U.S. data later in the session.

Investors are focusing on upcoming U.S. economic data, including consumer confidence and existing home sales, for fresh clues about whether the Federal Reserve will pause its two-year campaign of tightening credit in August.

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