Hunt proved a ready-made Wallabies player when he made his debut in June and his inclusion will give Australia confidence heading into the dead rubber against the All Blacks, who went through the Rugby Championship undefeated.
But Cheika moved to temper predictions an upset win is on the cards given the coveted trans-Tasman trophy has already been won.
"You have to look at the facts, at what they are," he said.
"New Zealand have been outstanding in the Rugby Championship.
"That win they had in South Africa was a really, really strong victory.
"I know the scoreline was 25-24, but that's a big win over there in those conditions... and with a few players out they'd normally have.
"They've had an outstanding championship, they'll be coming here to try and repeat the first half of game one.
"We're going to have to play so much better than we've been playing to go up there and challenge them."
Meanwhile, Cheika said he had been in contact with a number of candidates to replace forwards coach Mario Ledesma, who will leave the Wallabies after the Bledisloe Cup Test to take up the head coaching role with the Jaguares.
Nick Stiles, who was recently sacked by the Reds, is among them but Cheika said he had spoken to all the forwards coaches at the various Super Rugby franchises across the country.
"I'd be naive if I didn't look straight to our coaches at the next level and try and work out what the best mix might be," he said.
"As I said, we'll be looking to just appoint someone to come on the tour with us at this stage.
"That'll give us a bit more breathing space to take the time to make the exact appointment we want."
WALLABIES SQUAD FOR BLEDISLOE CUP III
Forwards: Jermaine Ainsley*, Allan Alaalatoa, Rory Arnold, Adam Coleman, Jack Dempsey, Tetera Faulkner, Folau Faingaa*, Ned Hanigan, Michael Hooper (capt), Sekope Kepu, Adam Korczyk, Sean McMahon, Stephen Moore, Tatafu Polota-Nau, Tom Robertson, Izack Rodda, Rob Simmons, Scott Sio, Lopeti Timani, Lukhan Tui, Jordan Uelese.
Backs: Kurtley Beale, Israel Folau, Bernard Foley, Will Genia, Reece Hodge, Karmichael Hunt, Samu Kerevi, Marika Koroibete, Tevita Kuridrani, Billy Meakes, Duncan Paia'aua*, Izaia Perese, Nick Phipps, Joe Powell, Curtis Rona, Henry Speight.
* denotes development player