"It was one of those situations where one could ask 'how could you not see him'," prosecutor Sandra MacDougall told the court.
O'Connor, 27, was seen driving erratically before McGuffie was hit. A witness has said the vehicle was veering into the cycle lane.
O'Connor is charged with culpable driving causing death and the alternate dangerous driving causing death, as well as hit-run offences and breaching bail. He applied for bail on Wednesday but was remanded in custody.
Magistrate Franz Holzer said O'Connor was driving while his licence was suspended and had accrued 28 demerit points.