Australia holds a one-shot lead over New Zealand at the halfway stage and South Africa is a further eight shots back in third place.
Ben Campbell and Ryan Fox led the way with 70 and 72 respectively while Mat Perry played the anchor role with a 2-over 74.
Fox (24) leads the individual honours on 144 and Campbell (20) is in second place on 145.
Campbell led the New Zealand charge after turning level before coming home 2-under for the tournament's best score to date.
Ironically, his assault on par began with a wayward drive when his grip with a wet glove slipped on the 14th tee.
He played a superb 6-iron from thick rough to within a metre of the cup for a birdie 3.
A driver, a 54deg wedge and another 1m putt gave Campbell his second birdie at the next hole.
"I changed my putter to one I bought last week and putted much better today," Campbell said.
Fox followed a similar template to his opening round, having struggled on the front nine to be three over par after 10 holes.
But a scintillating eagle-birdie finish returned him to par figures and his second par round, for the overall lead.
On the par 5 17th, Fox hit a four iron to within 5m and holed the putt for his eagle before sinking a putt of similar length on the final green for a birdie 3.
The shot of the day belonged to Ruan De Smidt (South Africa), whose 9-iron approach to the 547 par-5 ninth hole landed seven metres past the hole only to spin back and drop for an eagle 3.
With the best three scores counting, Smidt's eagle for 35 and Brandon Stone's two under 34 gave South Africa the best nine-hole total of 108 to catch New Zealand after 27 holes.
In sharp contrast, the Argentinians succumbed to the harsh conditions. Franco Romero turned with 38 while Martin Kim had 40 and Jorge Fernandez Valdes carded 42, while the team plummeted from second overnight into last position.
"We are not used to this kind of weather. We play in wind but found it difficult in the rain and cold," Argentina Manager Matias Anselmo said.
"We played a lot better on the back nine but it was a bit too late."
The third round will begin at 9am today and the event will conclude with the final 18 holes at the Hills tomorrow.
