New Zealand dollar trading below US$0.59

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The US dollar Index (DXY), which tracks the US dollar's performance against six major currencies, has pulled back from its yearly high of 107.06 recorded on Thursday. This decline is attributed to a slowdown in "Trump trades." At the time of writing, the DXY trades near 106.50. U.S. retail sales increased slightly more than expected in October as households boosted purchases of motor vehicles and electronic goods, suggesting the economy kicked off the fourth quarter on a strong note. The fairly upbeat sales report on Friday, which was accompanied by sharp upward revisions to September's data, together with news of a rebound in import prices last month, prompted traders to pare back expectations that the Federal Reserve would cut interest rates in December. Fed Chair Jerome Powell said on Thursday "the economy is not sending any signals that we need to be in a hurry to lower rates." Retail sales rose 0.4% last month after an upwardly revised 0.8% advance in September, the Commerce Department's Census Bureau said. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, would climb 0.3% after a previously reported 0.4% gain in September. Stocks fell Friday, putting major indexes in the red for the week as the election-fueled rally that took stocks to a series of record highs fizzled. The Dow Jones Industrial Average slipped 0.7%, while the S&P 500 and Nasdaq lost 1.3% and 2.2%, respectively. All three indexes lost ground this week. The Dow declined 1.2%, while the S&P and Nasdaq each recorded their biggest weekly declines since September after shedding 2.1%, and 3.2%, respectively.