The Aussie managed to bounce from 72c during Asia to test 74c during the European session. And this us where it fell apart, crashing through 72c to come within pips of testing 70c during the US session.
AUD and NZD crosses were the hardest hit overnight, particularly against the low-yielding CHF and JPY crosses as carry trades were unwound at breakneck speeds.
As long as the negative sentiment persists then risk currencies such as NZD and AUD will remain under pressure, along with stocks. Technically 72c is an obvious area of resistance that will be closely watched by participants so, as long as we remain beneath 72c a break below 70c appears to be a matter of time.
For confidence to be restored (or at least some of the fear removed) then it will be over to Beijing to take some sort of action with monetary policy or verbal intervention. Whilst this may not cause a remarkable turnaround it should at least help lower some of the volatility, allowing markets to focus on traditional calendar data and position accordingly.