Waugh, in Kolkata on a charity-cum-business trip, said that it was he who encouraged Moody three weeks back to send his resume to the BCCI for the coveted post.
The six-member committee set up by the BCCI to select a coach for the Indian team has short-listed former Australian skipper Greg Chappel, Moody and Indians Mohinder Amarnath and Sandip Patil for the top job.
"Chappel has a very sharp cricketing brain. But Moody is young, talented and will gel with the Indian team better," Waugh told newspersons.
Waugh said that Moody could be a "very good mentor".
"He has a very good work ethics and vision. He is ambitious and very keen to get the job. If I were to choose, I would have preferred him," he said.
On whether Moody, who has a level four coaching diploma, had it in him to take India to a new high as a successor to New Zealander John Wright, Waugh said: "That's what he can do. He can take India to the next level."
The former crisis man for the Australian team said Indian captain Sourav Ganguly deserved a place in the list of probables for the ICC World XI in the one-day series against world champions Australia in the Johnnie Walker Super Series in October.
"I think the decision not to consider him even for the one-day side is pretty harsh. He could have been included, though I feel in Tests he has not been in good form for long," Waugh said.
Asked to comment on the six-match ban slapped on Ganguly for the Indian team's slow over-rate in the Ahmedabad ODI against Pakistan last month, Waugh said, "The captain should be aware of his responsibilities. And he should ensure that his team folllow the rules." Strongly justifying the holding of the Super Series between the ICC World XI and Australia, Waugh said it was the dream of every cricketer to participate in such fixtures.
"I would have loved to be a part of the series," he said.
Waugh predicted that Australia would win the coming Ashes battle against traditional rivals England, though the contest could be close.
When a scribe pointed out that the Ashes seemed to have lost out in terms of popular appeal to India-Pakistan contests, Waugh said: "For England and Australia, Ashes will always be special. The interest will always be there."
Waugh had a series of meetings during the day on setting up a blind school in the southern outskirts of Kolkata.
He is scheduled to meet West Bengal chief minister Buddhadev Bhattacharjee on Thursday, before attending an interaction with the Confederation of Indian Industries in the evening.