SYDNEY (REUTERS) - The Australian dollar bounced from six-year lows on Tuesday as Chinese stocks steadied after a very shaky start, though sentiment was brittle amid uncertainty over the health of the giant economy.

The Aussie had clambered back up to US$0.7296 after taking an early dive to US$0.7257, but remained in a clear downtrend on the charts.

Traders were spooked by Chinese stocks, which fell more than 5 per cent at one stage on Tuesday morning before paring most of those losses. On Monday, the benchmark Shanghai index plunged 8.5 per cent - the largest single-day drop in more than eight years.

Investors often use the Aussie as a proxy for Chinese growth because of the countries' strong trade links.

"The Aussie dollar has been singled out for some pretty rough treatment for the last 24 hours," said Robert Rennie, chief currency strategist at Westpac Bank. "I think what we're seeing is a bit of taking profit."