Touring side well on top at the end of the third day.
Despite excellent innings from Kevin Pietersen and Ian Bell, it was Australia who finished with overall honors for the third straight day at Old Trafford.
Late wickets to the Aussies, including the key wicket of Petersen, kept them in the hunt to keep the series alive.
England v Australia
Played at Old Trafford
Toss won by Australia
Australia 1st Innings 527-7 dec (M Clarke 187, S Smith 89, C Rogers 84, M Starc 66 no, B Haddin 65 no; G Swann 5-159)
England 1st Innings (overnight: 52-2)
A. Cook c Haddin b Starc 62
J. Root c Haddin b Siddle 8
T. Bresnan c Haddin b Siddle 1
J. Trott c Clarke b Harris 5
K. Pietersen lbw b Starc 113
I. Bell b Harris 60
J. Bairstow c Watson b Starc 22
M. Prior not out 6
S. Broad not out 9
Extras (lb7, nb1) 8
Total (7 wkts, 120 overs, 519 mins) 294
Fall of wickets: 1-47 (Root), 2-49 (Bresnan), 3-64 (Trott), 4-110 (Cook), 5-225 (Bell), 6-277 (Bairstow), 7-280 (Pietersen)
To bat: G Swann, J Anderson
Bowling: Harris 26-9-50-2; Starc 26-5-75-3 (1nb); Lyon 26-8-77-0; Watson 15-7-26-0; Siddle 25-6-53-2; Smith 2-0-6-0
Australia: Shane Watson, Chris Rogers, Usman Khawaja, Michael Clarke (capt), Steven Smith, David Warner, Brad Haddin (wkt), Peter Siddle, Mitchell Starc, Nathan Lyon, Ryan Harris
Match position: England are 233 runs behind Australia with three first innings wickets standing.