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Malurus cyaneus
Tiny bird - maybe 2-3" long. Perhaps it is a youngster, or just a small bird. Other birds around at the time were Red-browed Finches (but by the shape of the beak, I don't think this is any kind of finch), and some Fairy Wrens (Superb Fairy Wrens, I think), but this bird does not have the long tail of the wrens - again, maybe it is a youngster? Not sure when they hatch. Pointy beak indicates it is an insect eater, maybe, and I wonder if the orange flash across the eye helps identify it? Apart from the total absence of a red breast, it reminded me very much (in shape and size) of the Robin Redbreasts I used to see back in England in the winters
This was the same habitat as the Red-browed Finches - on the margin between woodland and marshy grassland. About 1/2 to 1km inland from the sea. South-East Australia (60km south of Sydney).
Thanks all for the help with ID
Definitely a female fairy wren. Young males have black around their eyes and darker bills.