NSW recorded just four new COVID-19 cases in the overnight tally, but NSW Health has warned that this result comes amid "concerning" low test numbers.
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Three of the daily cases were travellers in hotel quarantine, and one was linked to the Eastern Suburbs Legion Club cluster.
These were found amid 9316 coronavirus tests in the 24-hour reporting period, down from 14,426 the previous day.
"Testing numbers have dropped over the past two weeks, and this is a concern," NSW Health's Dr Christine Selvey said.
Test numbers are usually lower on weekends, but have previously hit around 20,000 or 30,000 tests per day.
She also said it was likely the virus was still circulating in the community.
"While there has only been one new locally acquired case recorded in the past 24 hours, the virus is likely circulating among people in the community with mild symptoms," she said.
"As such, the risk of outbreaks and a resurgence of cases remains. It's vital that everyone who does have the virus is tested and diagnosed, in order to stop further spread to others."
NSW Health said this would be even more important with the upcoming school holidays, when people will travel across the state.
In her regular media conference, Premier Gladys Berejiklian said the daily results of just one community case were "pleasing".
"Our state is doing very well," she said, adding that "every day is a battle", urging people not to let their guard down until there is a vaccine found.
"No matter how comfortable you might feel, we can't let our guard down."
The total number of cases in NSW is now 3991 since the start of the pandemic.
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