But in added-time Mike Harris' penalty broke Welsh hearts and handed Australia an unassailable 2-0 series lead with just one Test remaining.
And Davies admitted his side had missed a great opportunity to gain victory in a game that saw the lead change hands ten times.
"One lack of concentration cost us," said Davies.
"You can't be handing Australia easy penalties and points like that, we're not going to get victories down here if we just give them easy points.
"We'll take the lessons from it and our performances are getting better.
"But if we're being real harsh it wasn't good enough. We gave Australia possession and an opportunity to win the game, we should be better than that."