England had earlier managed to add 113 runs from their overnight score before being bowled out for 346 runs at the stroke of lunch on Friday.
Here, we look at the key talking points from another eventful day.
USMAN KHAWAJA ARRIVES TO THE PARTY
The Ashes series is an important one for Khawaja who has been in and out of the Australian side in 2017. The left-hander hasn’t exactly flourished in the series despite two scores of fifty with an aggregate total of 162 runs in his six innings prior to Sydney.
The left-hander was in his element on Friday and was particularly effective against England’s spinners. His unbeaten 91 is his highest Test score in more than a year since his 97 against Pakistan in the Boxing Day Test of 2016.
He is on course for his sixth Test century and first since his 145 against South Africa in November 2016.
ENGLAND GET THEIR TAIL WAGGING
After Dawid Malan fell early to a stunning catch by Smith at slip in the morning, the writing seemed to be on the wall for the tourists with six wickets down.
With Moeen Ali woefully out of form, Australia would have expected to bundle out England fairly cheaply.
However, Ali dug in to put together a handy 30 runs before gloving behind to Pat Cummins. Tom Curran was scratchy and survived some close calls but put together a spirited innings of 39 crucial runs before being dismissed by another Cummins bouncer.
Stuart Broad, who had scored a fighting and entertaining half-century at Melbourne, once again brought out his pulls and hooks as the Aussies peppered him with the short-stuff.
He smashed two sixes in almost a run-a-ball 31 before falling to Nathan Lyon but England’s tail had showed impressive fight to add just under 100 runs after the dismissal of Malan.
STEVE SMITH NOTCHES ANOTHER MILESTONE
All throughout the Australian summer, Smith has put together insane numbers with the bat breaking several records in the process.
On Friday, he notched another feather in his cap when he completed 6,000 Test runs with a single to take his individual score to 26. The 111 innings taken by the Australian skipper is the joint second quickest in history along with Sir Garfield Sobers and behind only Sir Don Bradman who got there in just 68 innings.
To be in the company of the likes of Bradman and Sobers shows that the 28-year-old is as elite as they come in modern-day cricket and Smith could very well end up as one the greatest to have played the game if he keeps up this incredible hunger for runs.
CAMERON BANCROFT’S STRUGGLES CONTINUE
Bancroft showed a lot of promise on his Test debut in the Ashes opener at Brisbane with his unbeaten knock of 82 but since then, the opener has struggled to convert his starts.
He has failed to cross the 30-run mark since the Brisbane Test and the pressure would have been mounting on his shoulders when he came out to bat on Friday. Things did not go to plan for the right-hander though as he was dismissed for a duck to becomes Broad’s 399th Test victim.
He exposed an enormous gap between his bat and pads while attempting a drive but could only inside edge Broad’s in-swinging delivery onto his middle stump.
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