European Tour player Marcus Fraser of Australia shot a second consecutive 3-under 69 to take a one-stroke lead after two rounds of the Australian Open on Friday.
Fraser had five birdies and two bogeys to move to 6-under 138 at The Lakes. Fellow Australian Brendan Jones (71) and first-round leader John Senden, who shot 73, were tied for second.
Englishman Justin Rose was in a group tied for fifth at 3-under after a 73, while Adam Scott shot 71 and was five strokes behind Fraser.
Tom Watson shot a 68 Friday after his first-round 78 and made the cut with one stroke to spare. He was joined by playing partner and defending champion Greg Chalmers, who shot 75 Friday.