Henry's side is on the improve, finishing well ahead of an under-strength Springboks team 40-7 at Wellington on Saturday night.
But Henry acknowledged the Australians will be a lot tougher at Eden Park and the All Black side will have to increase its intensity.
"I think we are making the right steps. There is no doubt it is going to be a huge contest at Eden Park next week," Henry said.
"They have got some players who are very clever players, particularly in the backs. So you do not want to get ahead of yourself. We've had a look at the Australians as a coaching group last week. I'm looking forward to that game. It is going to be a real test of our mentality."
Henry said his side would have to prepare a lot differently this week as the opponent will present more questions in the backline.
"I think we are ready for that, we're looking forward to that and it is going to be a huge challenge."
After the match against the Wallabies the side travels to Port Elizabeth, where Henry expects the Springboks will get many of their injured players back.
So he expects the next three weeks to be a tough test of his side, and to see where it is in regards to World Cup year.
He expected all the rested players to be available for selection this week.
He gave his side a mark of seven out of 10 on Saturday night and said progress had been made in a couple of key areas from the opening test against Fiji at Carisbrook.
"It was important to us that we kept improving and the improvement was pretty obvious in the set piece. I thought the lineout was very, very fluent and the boys got scrum dominance as the game went on. We also played well at the breakdown. So that was pleasing.
"They were the two areas last week we were not effective as we should have been."
Henry though said his side still had things to work on - the kicking game lacked direction at times and the defence around the ruck was a little thin on occasions.
All Black captain Richie McCaw was pleased with the little things from his side, which overall right across the team, meant it had improved from the test at Carisbrook.
"I thought everyone on the field lifted it at notch and that gave the backs some good ball and that allowed everyone to get into the flow of things," he said.
"At times we got things wrong, turned it over a bit too often, and not reacting.
"But we've got to make another step up next week."
He deflected criticism that the win was over a second-string Springbok side.
"The guys out there are some good rugby players. They climbed into it, like they always do. They were up for it. Regardless of who was in the team we were playing the Springboks.
"There are some good players that will come back that will add to that team. There is no doubt about that."
McCaw said replacements had been called into the All Black side to fill in for injured players and they had played extremely well, and the Springbok players were the same.
McCaw warmed into his work more as the game went on and mixed with Adam Thomson to share the No 8 role.
Prop John Afoa appeared to be the only major injury scare for the All Blacks, after he broke some bones in his face, but he may be available this week.
Springbok captain John Smit scored his first try against the All Blacks but it was scant consolation for the captain of a side which was well beaten.
He said losing by 40 points was not a wonderful help to the self- confidence of players.
Springbok coach Peter de Villiers admitted his side was well beaten and he was looking forward to getting reports on the 21 injured players left at home.
Some players had put their hand up while others had not, he said. He placed youngster Patrick Lambie at first five-eighth and moved Morne Steyn to fullback and said the picture for wearing the Springbok No 10 jersey had become much clearer.
