Two-time Australian Open champion Aaron Baddeley finished two strokes off the pace alongside Andre Stolz and Greg Chalmers at 5-under-par 67.
Lonard opened with a birdie at the par-4 first and collected three more birdies on the front side at the Hyatt Coolum Resort to make the turn at 4-under.
The 35-year-old continued his fine play on the inward half with back-to-back birdies starting at the par-3 11th but ran into trouble with a bogey at the 14th. Lonard responded with a birdie at the very next hole and picked up his eighth birdie of the day with a short putt at the last for a share of first.
Moseley played the back nine first and ran home two straight birdies starting at the par-5 12th. He birdied 16 and scattered four birdies on the front side en route to a bogey-free round.
'I hit it in all the right spots and made all but two or three chances,' said Moseley. 'I felt as though I had 80 in the pro-am yesterday. I only made one birdie yesterday.'
Craig Parry, who earned his first PGA Tour victory at the WGC-NEC Invitational in August, was joined by Mark Brown and Adam Le Vesconte in a tie for seventh at 4-under-par 68.
Richard Green, Matthew Hazelden, Aaron Byrnes, Steve Collins, Cameron Percy, Michael Long and Terry Price share 10th at 3-under-par 69.
Greg Norman had four birdies and four bogeys to finish as part of a group at even-par 72 that includes Adam Scott and Peter O'Malley.
'I have not had a good night's sleep yet. When I catch up on that hopefully I will be back into synch again,' said Norman. 'Hopefully I can get a good night's sleep and shoot in the mid 60s tomorrow. You have got to do that around here.'
American John Daly had an eagle at the par-5 12th as well as three birdies on the front side. However, he had his fair share of struggles throughout the day with four bogeys and two double bogeys for a 3-over 75.
Full-field scores from the Australian PGA Championship