Korea's two-time major winner Jiyai Shin nicked the halfway lead from South Africa's defending champion Ashleigh Buhai with two late birdies in a four-under 68 at The Australian.

Shin will enter the weekend at nine under and two shots clear of Buhai, who had enjoyed the clubhouse lead for more than four hours following a morning 70 at The Lakes.

Another Korean, Jenny Shin, is sitting in solo third at six-under after a 73 at The Lakes.

Legendary four-time champion Karrie Webb is the only Australian to have won the Open in the past quarter of a century, and home hopes this year appear to be resting on a quartet of exciting young amateurs.

Teenage overnight co-leader Rachel Lee is at one-under in a tie for eighth through at The Australian, with Queensland pair Justice Bosio and Sarah Hammett, fourth and tied fifth respectively.

Ashleigh Buhai is looking to defend her crown at The Australian GC over the weekend. PHOTO: Getty Images.

While not out of it, Steph Kyriacou's prospects nosedived with a 75 at The Australian that left the Sydney local eight strokes off the pace.

Minjee Lee is back level with the card with fellow Australian major winner Hannah Green (73, The Lakes) after shooting the same score as her playing partner Kyriacou.

Despite being knocked off the top perch late in the day, Buhai was nevertheless delighted to be back in the mix a year after reigning at The Victoria and Kingston Heath clubs in Melbourne.

"It's a really good position any time you're in there near the top going into the weekend," Buhai said.

"I'm feeling good so far this week. I've taken it easy, it also helps."

Buhai, though, insists it's too early be thinking about going back-to-back in Australia.

"I've just got to focus on doing my steps and process. That's all I can control," she said.

"The minute you start thinking about the outcome, that's when trouble happens.

"My goal this week was to not have very high expectations and have fun, and that's what I've done the last two days."