Drawcard Hannah Green and countrywoman Kirsten Rudgeley are one shot shy of the leader at the midpoint of the $1.7 million tournament at Adelaide's Kooyonga Golf Club.
The Australian duo are five under after Friday's second round, chasing Celine Herbin (six under) from France.
Another Frenchwoman, Agathe Laisne, is also five under while Australian pair Kelsey Bennett and Stephanie Bunque are among a batch at four under.
Australia's three-time major winner Minjee Lee is one under.
Rudgeley, a 25-year-old who was born in London and moved with her parents to Perth aged four, drained five birdies in a seven-hole stretch in her five-under 67 on Friday.
"It was a steady round of golf," said the understated world No.132.
"I putted well and struck the ball nicely. And when I made a mistake, I made up for it ... it was definitely nice."
World No.620 Bunque's four-under 68 featured five birdies in an eight-hole span.
"To be able to just put together a good couple of scores for the first two days, I'm building on my confidence," the 28-year-old from Melbourne said.
"I know that I am a good player and I know that I am capable of putting on a good show."
The locals are staking claims to become just the fourth Australian to win their national open, joining Karrie Webb, Jan Crafter and Jane Stephenson.
Webb's fifth title in 2014 was the last Australian salute, and world No.9 Green was relishing her opportunity after roaring into contention with four birdies in six holes on the back nine.
"I probably am putting a lot more pressure on myself than I'm used to," Green said.
"I was getting a little bit impatient on that front nine, but I saw a couple of longer putts go in on the back nine which gave me some confidence."
Green was grouped with her close mate and world No.4 Lee in the opening two rounds, the pair tracked by large galleries.
And world No.9 Green issued a rallying call to the parochial fans for the weekend.
"I'll definitely need to rely on them come this weekend because it's going to be hard to try and close out this tournament," she said.
"But so far, I have put myself in a good position."
Green's fellow Australian and major winner Grace Kim has much ground to recover after signing for an even-par 73 to remain three over.
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