Smith added a second round 67 to his opening 66 and at 7-under through 36 holes is six shots off the pace being set by American Brian Harman.
However, the reigning Australian PGA champion is just three shots out of second place which is being shared by five players including overnight co-leaders Zach Johnson and Chris Kirk.
Smith is one of four Australians to survive the halfway cut, Marc Leishman also still in the mix at 6-under and T17 while Matt Jones (T28) and Monday qualifier Steve Allan (T63) are likely too far back to threaten.
Harman, one of the form players on the PGA Tour in recent months, is three shots clear of the chasing pack at Waialae Country Club with scores of 64-63 to be 13-under and in a commanding position.
His 7-under effort in the morning wave on day two was the best of the Friday scores and through 36 holes he has dropped just three shots.
There are 35 players within five shots of the group sharing second place, however, meaning Harman can ill afford to stumble over the weekend.
For Cameron Smith the week has been a continuation of the good form he had at the tail end of 2017 and with 11 birdies in the opening two rounds all parts of his game are clearly in good shape.
Leishman, too, has been impressive in recent months and while yet to fully hit his stride this week will fancy his chances over the weekend at a course where has gone low in the past.
In nine appearances the Victorian has never missed the cut in Hawaii and with a best of 8-under 62 at Waialae is not out of the running yet.
Aaron Baddeley and Greg Chalmers were the two Australians to miss the cut.
World Number Two Jordan Spieth, who suffered a humiliating quadruple bogey in the opening round, was once again in the news on day two but for more positive reasons.
The four time major winner holed a 91 foot putt – the longest of his professional career – at the fifth hole Friday on his way to a second round 68 to make the cut with one shot to spare.
JORDAN SPIETH'S MONSTER PUTT AT THE SONY OPEN IN HAWAII:
The longest putt of his career!
Jordan being Jordan. pic.twitter.com/r32lMU0aPm— PGA TOUR (@PGATOUR) January 13, 2018
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