And Davies, a try-scorer in the 25-23 loss in Melbourne, is desperate to finish the tour on a high.
"What's vital for this team is how we react," said the Scarlets centre.
"We must react in a positive manner as we've got to finish the tour on a good note. It is very important we came down here and got a victory.
"Although the test series is lost now, I think for the development of this squad to the autumn we have to make sure we get a victory and ensure we keep focused."
Wales appeared set to claim an illusive victory over the Wallabies at Etihad Stadium on Saturday as they led 23-22 at 80 minutes
But Wallaby replacement fly-half Mike Harris broke Welsh hearts with the final kick of the game.
Wales boast just one victory over the one of the southern hemisphere giants in their last 39 meetings but caretaker head coach Rob Howley insists the gap is closing.
"We're getting closer," said Rob Howley.
"This team has been to some dark places, particularly in the Rugby World Cup, and we'll move on.
"But our emotional intelligence and composure in critical areas in the game must get better."