Australia coach Joe Schmidt is confident the Wallabies are on an upward trajectory despite seeing his side slip to a late series-deciding loss to the British & Irish Lions in Melbourne on Saturday.

The 29-26 defeat at the Melbourne Cricket Ground was the Wallabies second in succession against Andy Farrell’s team and means the Australians have only pride to play for in the final test in Sydney next weekend.

The nature of the performance from a Wallabies side that held an 18-point lead over the tourists at one point before Hugo Keenan’s last-gasp winning try has given Schmidt belief his team are moving in the right direction.

“I think they are progressing,” said the New Zealander. “It’s never linear. It always tends to ebb and flow.

“Our challenge is to try and be as consistent as we can, even within the game. When you build a lead of 23-5 and that slips, that’s hugely disappointing. Particularly when it happens in the last play of the game.

“We are trying to build consistency, we’re trying to play a brand of rugby that entertains people and at the same time a brand of rugby that we enjoy playing.

“I’m really proud of the effort the players put in and I’m really disappointed for them.”

Schmidt’s side for the third test is likely to be missing wing Harry Potter, who was replaced by Tate McDermott in the 19th minute of the game.

“I don’t think Harry Potter will be fit, that’s a hamstring injury that looked severe enough to put him out for a period of time, so that might be an opportunity for somebody else,” said Schmidt.

“We’ve got a fair few bumps and bruises, including some fall-out from the last action of the game and we’ll get players checked out and see how they come through.”

The Wallabies have announced former New Zealand lock Tom Donnelly will join the set-up as an assistant coach ahead of the Rugby Championship. He will replace the departing Geoff Parling.

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