The Dragons have no hope of making it out of their Euro 2012 qualifying group after suffering four losses from their four games to date.
But being grouped with Croatia, Serbia, Belgium, Scotland and Macedonia for the next batch of World Cup qualifiers would appear to offer some hope of reaching a first major finals since 1958.
Wales face the Socceroos on Wednesday night and Speed believes a tough test against the 2006 and 2010 World Cup finalists is just what his side, ranked joint 112th in the world, need.
"They are a good team, they are on the fringes of the top 20 in the world. They are strong," Speed said.
"They beat Germany recently but these are the teams we want to play against as we feel it will enhance our development.
"Playing sides like Australia will make sure we are ready for when those qualifiers come around."
Speed is set to be able to name Gareth Bale in his side for the first time, with the Tottenham winger having missed the former Sheffield United manager's four games in charge due to injury.
Manchester City's Craig Bellamy is also set to be handed a start and Speed is confident the striker, who is set to start the season without first-team football, will deliver at Cardiff City Stadium.
Speed said: "Craig is feeling as good as he has ever felt, he has had a good pre-season, he has played a few games and is raring to go.
"He is the old Craig Bellamy and he has been 'in your ear', moaning here and moaning there, and that is a good sign.
"Craig will give 100 per cent whatever the circumstances and he is too good not to be playing in the Premier League. He has worked hard in pre-season and he will be looking to get another game under his belt.
"He has so much to offer and I am sure his situation will be resolved sooner or later.
"His attitude has been excellent and he is a real example to the rest of the squad."
Australia coach Holger Osieck is in no doubt as to the task that lies ahead for his men, despite Wales' lowly place in the world rankings.
He said: "I rate Wales pretty highly. Knowing some of the individual quality. If you look at Aaron Ramsey, Gareth Bale, Craig Bellamy, Robert Earnshaw they are top-class players and the rest are not bad either.
"We are facing a very strong team."