SHANGHAI, China — Undefeated but no longer unchallenged.

The U.S. Olympic basketball team wrapped up its exhibition schedule with its toughest test, pulling away to beat Australia 87-76 Tuesday night in its final game before heading to Beijing.

The United States led by only four points nearly halfway through the third quarter and was up by seven midway through the fourth against an Australian team that was resting its best player, Milwaukee Bucks and ex-Utah Ute center Andrew Bogut.

The Americans relied on an aggressive defensive effort to overcome a horrendous night from 3-point range and the free throw line, the same areas that proved costly in their semifinal loss to Greece in the world championships two years ago.

"I think we made it a little harder on ourselves by not moving the ball around as much," Dwyane Wade said. "We didn't make our outside shots tonight as well as we've been in the past, but at the end of the day we won the ballgame. We found a way to win."

Wade scored 22 points and LeBron James had 16 for the Americans, who finished 3-of-18 from behind the arc and 20-of-33 (61 percent) at the foul line.

Patrick Mills and Chris Anstey, who had a first-half altercation with Wade, each scored 13 points for Australia.

"In the third quarter they knocked down some big shots and I think that got them back in the ballgame," Kobe Bryant said. "And for us, we have to understand that that's going to happen from time to time and it's important to keep our poise, keep our composure and buckle down."

The U.S. team seemed in control after allowing one basket in the final 5 1/2 minutes of the first half to open a 44-29 lead. But the Americans left that defensive intensity in the locker room, allowing a number of open 3-pointers and uncontested drives to the basket.

"We came out lazy," Wade said.

The Australians outscored the Americans 13-2 to open the third quarter, pulling to 46-42 on David Barlow's layup with 6:52 remaining in the period. The United States regrouped behind Wade and Carmelo Anthony, rebuilding the lead to double digits headed to the fourth.

"We just broke down. We gambled a couple of times and allowed them to make the extra pass," James said. "We can't have those type of mental breakdowns because these teams can really shoot the ball."

Michael Redd and Wade had layups to open scoring in the fourth, pushing the U.S. lead to 69-55. Australia scored nine of the next 11 points to pull within seven with still half the period left, making the upset seem possible. The crowd even got behind the Australians, loudly booing a call that overruled what seemed to be a potential three-point play for them on an offensive rebound.