He added: "The doubles is a 50-50 match. Jurgen and Julian (Knowle) are a tough pair and have played together much more than any of our combinations have.
"If we win the doubles we'll be strong favourites to win the tie."
Murray's victory over Peya was a welcome relief for the British team after Alex Bogdanovic continued his losing run in Davis Cup and at Wimbledon.
The 24-year-old suffered his sixth consecutive defeat in a live Davis Cup rubber and eighth at Wimbledon as he went down 3-6 7-6 (7-3) 6-2 6-1 to Austrian number one Melzer.
Lloyd insisted he could see an improvement in Britain's number two.
"The bottom line is Alex played as well as he can play," he said.
"I would have liked to have see Melzer out there for another hour or two to be honest. If Alex had kept him out there, that would have been fabulous, but Melzer played well. You have to hand it to him.
"I didn't expect anything different from 1-1 (at the end of the first day). I was pleased overall with the way Alex played."
GREAT BRITAIN v AUSTRIA
Saturday (1300 BST) Hutchins/J Murray v Knowle/Melzer
Sunday (1100 BST) A Murray v Melzer Bogdanovic v Peya
Bogdanovic led 6-3 4-1 and had two points for a 5-1 lead before slumping to defeat.
"I think that was a little bit of a turning point," said the 24-year-old.
"I played pretty solid to get to that point but I felt like he played two good points when I had the two break points and I think when he got through that set, he stepped up a level and he started to serve a lot better and he was dictating points from the back."
And Bogdanovic maintains he is in the right frame of mind should his singles match against Peya on Sunday be the deciding fifth rubber.
"Obviously it's going to be a tough match for me because you are playing for your country and it's a decider to get into the World Group," he said.
"It's normal that I'm going to be nervous. But I just feel like if I can go out there and do like I did today and just play aggressive as much as I can, that's all I can do.
"I think if I can play as well as I did today then I've got a good chance on Sunday."
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