Ryu So-yeon's form fell back to earth on the third day of the Australian Ladies Masters.

However, the US Open champion retained a three-shot lead despite a disappointing round of 69.

A day after firing a blistering 11-under-par 61, the South Korean had her worst day of the tournament so far with bogeys on the first and ninth slowing her pace considerably at Royal Pines.

The 69 moved Ryu to 20 under par after three rounds, but her lead over Holland's Christel Boeljon has been cut to three as the latter went round in 68, with a bogey on the eighth costing her a share of the lead.

Kim Ha-neul signed for an eight-under par 64, capped by an eagle on the 18th, to snatch a share of third-place along with Italian Diana Luna, who went round in 66 to move to 15-under, five shots off the lead.

New Zealand's Frances Bondad had the best day of the leading pack with a run of five straight birdies on the last five holes powering her to a 63 and sole possession of fifth place, seven shots off the lead.

Compatriot Nikki Campbell and Lee Bo-mee, who were tied for third on Friday, could only manage matching rounds of 70 on Saturday and fell back into joint sixth place.

Teenager Lydia Ko went round in 69 for a second straight day to sit in a tie for 16th place on eight under par.

The 14-year-old New Zealand amateur became the youngest winner of a professional tour event with victory in the New South Wales Open last week.