"But we're only halfway through so I still have a lot of work to do.
"There is no doubt guys can come from the back. I did it here a few years ago to get in a playoff."
While happy with his five-under round of 67, Baddeley conceded it might take a little divine intervention to make a run from his spot at three-under to an unlikely title challenge.
"Obviously, Steve is playing great and he is going to be hard for anyone to catch but his round today proves you can go low," Baddeley said.
"I have put myself into a place where a really low round will give me a chance.
"If I can do something similar to Steve tomorrow then you never know what might happen.
"My game is feeling good so I just have to shoot really low and hope the wind blows."
The 30-year-old pinpointed a need for improvement in his approach shots if he is to start the mini miracle.
"If I am to make a run, I probably just need to hit it a little closer to the hole and create a few more really great birdie chances," he said. "I was just missing the longer putts today but, if they start closer, obviously they are a better chance to go in.
"I'm actually really excited for the next two rounds. I don't feel under pressure at all and the game is great. It was almost a ho-hum five-under today.
"It could have been 10-under pretty easily so I know it's possible."
- AAP