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VIDEO: Wallabies need to be 'realistic' after latest defeat

REACTION: Wallaby coach Joe Schmidt said he was proud of the way Australia battled back into their clash with New Zealand, but admitted they still had plenty to work on.

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The hosts were their own worst enemy in the opening 15 minutes of the Bledisloe Cup showdown in Sydney, with sloppy defending and unforced errors seeing them slump 0-21 behind.

It looked like another rout was on the cards, following their humiliating 27-67 defeat to Argentina a fortnight ago.

But they steadied and fought back into contention in the second half, setting up a grandstand finish with the All Blacks hanging on for a nerve-jangling 31-28 win.

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“We really rolled our sleeves up in the second half, but the reality is they could’ve had more of a margin on the scoreboard if they didn’t miss a couple of chances,” said Schmidt.

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“We’ve got to be realistic about that. We lost the Test match. We can’t finish a close second.

“There’s some things to be proud about – the way we were building our way back into the game. But you give New Zealand a start like that, it’s too tough to overcome that.”

Australia were forced to make twice as many tackles as New Zealand, and they lost the breakdown and line-out battle.

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Schmidt said there were elements to learn from and build on.

“Once it became tight, we probably had a few chances that we didn’t put away,” he said.

“But pleased with the way we dug in, to build our way back.”

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