Investors could see a cautious start to the trading week in Australia with the stock market expected to consolidate after plenty of optimism last week about economic recovery.

The SPI 200 futures contract was lower by 24 points, or 0.42 per cent, to 5,725.0 at 0800 AEST on Monday, indicating losses in early trade.

The easing of coronavirus restrictions and economic revival has buoyed investors of late, and the ASX finished May up 4.2 per cent.

Tension between the US and China over the latter’s national security legislation on Hong Kong have been the main blight on optimism.

US President Donald Trump last week ended his country’s special trade relationship with Hong Kong in response.

However, civil unrest in the US over the weekend means traders will be cautious, IG market analyst Kyle Rodda says.

“Early moves in markets this morning point to a slight return of risk-aversion to start what’s a jam packed trading week,” he said in a note.

“A risk-off skew in FX markets points to some nervousness amongst traders, quite possibly partially due to the civil unrest engulfing parts of the United States over the weekend.”

Locally, coronavirus restrictions are easing further in states across the nation today.

Restaurants, pubs and clubs are allowed more customers at their venues in New South Wales, Queensland, South Australia and Victoria, and intra-state travel is allowed.

The main economic events scheduled for this week include the release of GDP figures for the March quarter on Wednesday.

The big question will be whether Australia can avoid a technical recession by recording a small increase.

The Reserve Bank of Australia also meets on Tuesday to consider the cash rate, although economists do not expect change to the official rate.

One Australian dollar was buying 66.65 US cents at 0800 AEST, up from 66.55 US cents at the close of trade on Friday.