Senior, an Australian who was tied with fellow countryman Steve Collins after the first round, had eight birdies and one bogey on the 6,852-yard, par-72 Hyatt Regency resort course.
'I was really happy with the way I got going, and I thought I could birdie every hole,' said Senior, who is at 15-under 129 overall.
Rod Pampling is second at 134 after a 69 on Friday. Peter O'Malley, Nick O'Hern and Craig Parry are tied for third at 135, six strokes back of Senior. Collins had a 73 to drop into a tie for seventh with Adam Scott (69) and Stephen Allan (67).
Jean Van de Velde of France, trying to come back from a serious knee injury, had his second straight 69 that left him nine strokes back of Senior and tied for 10th. Americans Ryan Palmer and Stewart Cink were in a group of seven with Van de Velde, Cink with a 67 and Palmer with a 69.
Greg Norman, using tennis player Lleyton Hewitt as his caddie, had an inconsistent day with two double bogeys, two bogeys and four birdies for a 2-over 74. He's tied for 31st and 12 shots back of Senior.
American Rich Beem, the 2002 PGA champion, shot a 69 and is at 2-under 142, 13 strokes back.
The cut was made at even-par 144, leaving American Matt Weibring (145) and former PGA champion Wayne Grady of Australia (151) out of weekend play.
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