Germans were pulled back and the Italians were holding the front from 5 July 1942

Auchinleck was the one who had requested an Australian brigade because he believed that when Rommel had withdrawn the German divisions from the front that he might be preparing to withdraw to the west. General Morshead had decided to use the 24th Brigade because they were the only Australian brigade to have trained for mobile operations. Auchinleck's optimistic plans were to push west to El Daba. The push to the west never happened in this time frame, because Rommel was still thinking that at some point he could break the British front and push on to Cairo. By 5 July, Auchinleck had decided not to attempt to flank the enemy front with XIII Corps and push into the enemy rear areas. He decided to use XXX Corps and XIII Corps to push to Deir el Shein. By then, the German divisions had been withdrawn, as well as XX Corps (Italian mechanized divisions). Italian infantry from the X and XXI Corps now held the front. The German divisions were left to "rest and reorganize". Rommel still hoped to stage a new attack and push through the British front.
The Australian 24th Brigade was ordered to occupy Ruweisat Ridge. Their duties were to hold a strong defensive position that would allow the 1st Armoured Division and mobile columns from "Wall Group" (Brigadier Waller)to operate. 24th Brigade now reported "directly" to XXX Corps. They replaced the 50th Division headquarters and "Stancol" which was sent "back to the Delta for reorganisation". The commander of Wall Group was from the 10th Indian Division. When General Morshead visited the front, he did not like the improvised organization based on mobile columns.
By 6 July, a plan was in the works for 24th Australian Brigade to stage a raid "on a ridge west of Alam Baoshza. Perhaps they would attack and then withdraw. An alternative version of the plan had them staying and holding the area with tanks and 6pdr anti-tank guns arriving at dawn. This idea was part of an ongoing planning session about a attack on the enemy positions with the goal of breaking through. This is based on the account in Vol.III of the Australian Official History.