Firefighters are bracing for deteriorating conditions today as they continue to battle a large grassfire at Tarago north east of Canberra, which has already destroyed one rural property.

The blaze, which is being referred to as the Currandooley fire, has burned about 3,300 hectares near the small New South Wales towns of Boro and Tarago.

NSW Rural Fire Service spokesman Greg Allen said crews worked overnight to strengthen containment lines, but the fire continued to burn out of control.

“At the moment firefighters are continuing to protect property … residents in the area need to remain vigilant and monitor the situation, [and] follow the directions of firefighters on the ground,” he said.

“We have had a report that one property has been damaged, the extent of which we are yet to confirm.

“We’ll have building impact assessment teams onsite later this morning.”

The warning level for the fire has been set to watch and act.

People in the Mount Fairy and Boro areas, including Mount Fairy Road, Goulburn Road, Boro and Lower Boro Roads have been advised to monitor the situation.

Tarago Road and Goulburn Road remains closed to traffic and the Goulburn Queanbeyan Railway is also closed.

Conditions eased last night with rain falling in the area, but crews will face hot, dry and windy conditions today.

A total fire ban is in place for the ACT and areas to the north, east and west of the territory today.

The fire danger rating for the NSW southern ranges area where the fire ground is located is set to extreme today, while the ACT rating is set to severe.

In Canberra, the temperature is forecast to reach 37 degrees Celsius, while to the north of blaze at Goulburn, NSW the forecast is for a windy top of 38C.

Meanwhile, police examining the cause of another bushfire on Tuesday at Wamboin, NSW, to the east of Canberra, have spoken to a cyclist spotted near the blaze, and ruled them out of their ongoing investigations.

Officers urged anyone who saw suspicious activity on Norton Road to contact Crime Stoppers.