The NZ dollar has lost further ground against the British pound (GBP) on Monday thanks to weak risk sentiment in Asia.

The pound sterling (GBP) is holding up fairly well against the New Zealand dollar at present and the rate has not suffered too much on the back of the Friday sterling sell off.

Concerns about China are keeping NZ dollar strength at bay for the moment, although a rate increase from RBNZ looms.

"With little to push the rate in either direction, sideways trading looks most probable today," says Sasha Nugent at Caxton FX.

A look at the New Zealand dollar exchange rate complex shows:

Weak Asian markets to keep NZ dollar contained

Asian markets were week on Monday, this weighing on the commodity currency complex.

The Asian stock markets made a mixed start to the week.

The Hang Seng and Shanghai’s Composite lost 0.88% and 1.75% respectively (at the time of writing) on MNI report that China’s Industrial Bank pulled back on lending to property developers.

News weighed on the Aussie-complex already weakened by last week’s decline in iron ore prices.

British pound sent lower on Friday

Last week’s GBP-negative news brought the Cable to close below 1.6668 (former high) vs the US dollar on Friday.

"As trend and momentum indicators lose pace, we expect deeper downside correction in the continuation of lower-lows-lower-highs pattern building since last Monday fresh pick of 1.6823. Option barriers are seen pre-1.6675/1.6700," says a note on the matter from Swissquote Bank.

Looking at the euro dollar rate, EUR/USD rallied to 1.3759 on Friday as the existing home sales in US dropped at the faster pace of -5.1% in January (vs. -4.1% exp.).

The pair opened the week well bid as Moody’s upgraded Spain’s government bond rating to Baa2 with positive outlook roughly 5 minutes to NY close on Friday. EURUSD rallied to 1.3750 as Europe walked in.