"That's kind of what you train hard for, that's where you want to be.
"It's not where I don't want to be, so I'm always happy when I come out against him because the atmosphere is different and I enjoy the matches normally.
"I mean, it's not as cool when you lose in straight sets.
"Nevertheless, there's good moments out there as well.''
Federer entered Friday night's clash boosted by impressive wins over Jo-Wilfried Tsonga and Andy Murray but said facing Nadal was something else entirely.
"It's totally different playing Rafa over anybody else. Playing Murray or Rafa is day and night,'' he said.
"It's not because of the level necessarily, but it's just every point is played in a completely different fashion and I have to totally change my game.
"No excuse. It's just a fact.''
But Federer said he would still leave Australia reassured his game is back on an upward curve after making the Brisbane International final then the Australian Open semis.
"I still feel my best tennis is only ahead of me right now,'' the 17-time grand slam champion said.
"So I'm looking forward to the next couple of months.''
-AAP