Greenback Loses Ground As Early Risk-Off Impulse Dissipates

Walmart's disappointing profit outlook spooked markets, but initial defensive flows petered out as U.S. e-mini futures found a base and retraced the bulk of their early losses. This applied renewed pressure to the greenback, sending it to the bottom of the G10 pile, with the BBDXY index extending Monday's weakness.

• Decent enough performance from Chinese tech space provided reprieve to risk, with Alibaba shares doing the heavy lifting. The company said it will seek a primary listing in Hong Kong, which would make its shares directly accessible to investors from mainland China.
• The kiwi dollar remained one of the worst G10 performers alongside the USD and CHF. This comes after the kiwi lagged its commodity-tied peers on Monday. AUD/NZD retraced its earlier upswing to NZ$1.1130 but remains a handful of pips above neutral levels as we type.
• The Norwegian krone outperformed amid good demand for crude oil futures.
• Today's data highlights include U.S. new home sales & Conf. Board Consumer Confidence. Elsewhere, the FOMC will begin its two-day meeting.