Moody's two-round total, 11-under 133, is one-stroke better than world No. 1 Lorena Ochoa (67) and Jill McGill (69). Moody, who shared fourth place with Christie Kerr after Thursday's first round, closed her second 18-hole tour at the Senator Course at Capitol Hill Golf Club by making birdies at the last two holes.
"I think I just gave myself a lot of birdie chances," Ochoa said. "I've been very accurate with my irons and good with the distance and hopefully I can continue that on the weekend."
Michele Redman (65) is fourth at 9-under 135, with Song-Hee Kim (68) and Christina Kim (66) both 8-under 136, tied for fifth place.
Redman's 7-under 65 was the day's best score Friday.
Defending champion Maria Hjorth (68) is even-par 144 and shares 55th place with 13 others.