Australia have not played since the 2023 World Cup in France, when they were eliminated at the group stage during which they suffered a record 40-6 defeat to Wales in Lyon.
The Wallabies have changed coaches with Joe Schmidt replacing Eddie Jones and start the series ninth in the world ranking, one place above Wales.
Dragons wing Dyer, 24, believes the hosts are favourites.
“They have the home advantage, they’re the ones who are probably the favourites at the moment,” said Dyer.
“For us it’s about going out in a new destination and enjoying the occasion and the moments to come.”
The bookmakers agree with Dyer’s assertions and Wales are comfortable with an underdogs tag.
“We will take that,” said defence coach Mike Forshaw.
“It is a long time since Wales won here and it’s a different challenge playing the Wallabies in Australia.
“We are looking forward to it, we are going to be competitive and want to win the game.”
Forshaw believes a victory can inspire a long-term Wales revival.
“We are on that journey at the moment,” said Forshaw.
“We are probably not there yet but hopefully by the end of this tour we will have taken some steps.
“We are in the business of winning rugby matches and we need to start doing that.
“As soon as that starts happening, and it will, I am confident we can go upwards over the next 12 months.”
