Risk aversion also could be seen in currency markets over the weekend with Japan’s yen appreciating.

The Australian Dollar has drifted lower, retreating from the US77¢ level it unexpectedly broke through last week. Still, there was “real demand on the back of the reflation trade” for the Aussie and perhaps the currency was simply “a little overextended”, said Stephen Innes, senior trader at OANDA.

“FX investors are doing little more than moving from one position event to the next, while keeping positions light in between to avoid getting sideswiped by all the political noise,” Mr Innes said.

AFR WEEKEND