Allenby is now 10-under 206 for the tournament on the 6,996-yard Huntingdale course. Australian amateur James Nitties, who shot a 6 under, and James Moseley, who fired a 3 under, were tied for second at 8-under 208. Rod Pampling was another shot back.
Allenby's opening tee shot went into the trees to the left of the fairway, and he ended up three-putting for a double bogey.
'I felt pretty good on the tee. Every year I always hit it in those trees so I guess I was expecting to hit it one day in there,' he said.
Allenby also bogeyed the eighth, 11th and 15th holes, but he made up for his miscues with five birdies.
Allenby, who has the flu, said he lost his hearing for about two holes beginning on the 12th hole.
'If you lose your concentration at any given time it's very easy to hit some off shots and that's what happened a few times,' Allenby said.
Defending champion Peter Lonard's followed up an eagle at No. 10 with double bogeys on the 13th and 18th holes to finish with a 72. He was five shots behind Allenby.
Nitties, 21, said he will likely turn pro by the end of next year.
'I want to work on my swing a bit more and I want to get a bit of money behind me and a bit of exposure,' Nitties said. 'I don't want to be just another guy that turns pro and you never hear of him again.'
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