The seventh-wicket stand was Australia's second-best ever

Centuries by Australia's Simon Katich and Adam Gilchrist and five wickets for New Zealand's Daniel Vettori were the day three highlights in Christchurch.

Australia were 201-6 when Katich (118) and Gilchrist (121) joined forces, but their 212-run stand for the seventh wicket revived the tourists' hopes.

Vettori then weighed in with four wickets for the day to help the Black Caps to a one-run first innings lead.

At stumps New Zealand had reached 9-0 in the second innings.

The day had begun well for the home side, as Australia resumed on 141-3 but they soon lost Ricky Ponting (46), Michael Clarke (8) and nightwatchman Jason Gillespie (12) for the addition of just 60 runs.

His ability to score quickly and with good batsmanship sets him apart from most batsmen Daniel Vettori on Adam Gilchrist More day three quotes

Wicket-keeper Brendon McCullum held catches to remove Ponting and Clarke off the bowling of Chris Martin and James Franklin respectively, while Vettori claimed the scalp of Gillespie.

But this only brought together Katich and Gilchrist, who proceeded to produce a stunning batting display, scoring at a rate better suited to one-day cricket.

Katich reached three figures first with Gilchrist reaching that particular landmark for the 14th time in Tests following the tea break.

Soon after the interval Vettori tempted Gilchrist into going for a seventh six, only to be caught out in the deep straight down the ground by Iain O'Brien.

The 212 runs Gilchrist, who also struck 12 fours, put on with Katich was Australia's second-best for the seventh wicket, falling just five short of Gary Gilmour and Dough Walters' stand against the Kiwis at the same ground in 1977.

Katich soon followed him back to the pavillion, holing out to Lou Vincent off the bowling of Nathan Astle, and the departure of the duo left Australia on 418-8, 15 runs behind.

Vettori wasted little time in polishing things off, claiming the wickets of Shane Warne (two) and Glenn McGrath (nought), with Michael Kasprowicz unbeaten on 13.

At stumps, Stephen Fleming (seven) and Craig Cumming (two) had ensured New Zealand's lead reached double figures.

Australia: Ricky Ponting (captain), Justin Langer, Matthew Hayden, Damien Martyn, Michael Clarke, Simon Katich, Adam Gilchrist, Shane Warne, Jason Gillespie, Glenn McGrath, Michael Kasprowicz.

New Zealand: Stephen Fleming (captain), Craig Cumming, Hamish Marshall, Lou Vincent, Nathan Astle, Craig McMillan, Brendon McCullum, Daniel Vettori, James Franklin, Chris Martin, Iain O'Brien.

Umpires: Aleem Dar, Pakistan; David Shepherd, England.