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Sydney FC coach Graham Arnold says his side produced a "very positive performance" despite going down 4-2 to Melbourne Victory last night.

Sydney led 1-0 and also 2-1, with the Victory equalising twice, before going on to record a two goal win.

The Sky Blues dominated much of the second half, but were unable to find a second half goal, hitting the post on two occasions.

โ€œThe big moments decided the game. I thought overall the two sides were equal,โ€ Arnold said after the match.

โ€œAt 2-2 we hit the post twice in one phase with [Shane] Smeltz and [Matt] Jurman.

โ€œThey go down the other end, [Gui] Finkler has a shot, it's going about 10 metres wide, cops a deflection and falls straight at the feet of [Kosta] Barbarouses and he scores.

โ€œThose things happen in football. That's what happened tonight but overall I thought our performance was very good. Our purpose going forward was much more of what I expected.

โ€œI told the boys [after the game] if they keep playing like that you won't lose too many [games].

โ€œIt was a very positive performance. I thought it was a good spectacle, the crowd that turned up got a good game, there were plenty of goals and now hopefully there will be no more โ€˜boring, boring Sydney'.

โ€œLike last year and all the other years, we get better and better as the season goes.

โ€œWe've got young boys that are improving all the time. We'll get better as the season goes on. We've got a lot of quality in this team and I've got a lot of belief in what we've got.โ€

Melbourne next face Central Coast on Thursday night at AAMI Park, while Sydney FC play Perth Glory at nib Stadium on Saturday night.