New Zealand's Jacob Oram made a career-best total of 126

Damien Martyn and Michael Clarke put on 69 for the fifth wicket as Australia recovered from a mini-slump to end day two of the first Test on 197-4.

At stumps, they trailed New Zealand's first-innings total of 353 by 156, but it could have been worse after they had struggled to 128-4 earlier on.

Jacob Oram's career-best 126 was the mainstay of the New Zealand innings, after they had resumed play on 250-7.

Kiwi bowler Daniel Vettori did most of the damage with the ball, taking 2-49.

Michael Kasprowicz, who took the first three wickets on Thursday, got day two off to the perfect start when Daniel Vettori went for the addition of just four runs to New Zealand's overnight total of 250-7, edging to Warne at slip.

But the Black Caps failed to be deterred and settled courtesy of an array of hefty blows from Oram and some resilient batting from Kyle Mills.

Despite Oram and Mills' performances with the bat and gaining four wickets, it's still anyone's game From Dave Have your say on TMS

Mills' innings, though, came to a close as he too nicked the ball to the slips, Matthew Hayden this time taking the catch off Warne's bowling.

Chris Martin then joined Oram at the crease, and lasted half an hour without scoring to allow his partner to move from 92 to 126, before becoming Warne's fourth victim.

The Kiwi bowling attack seemed inspired by Oram's exploits with the bat, and they made a dream start when Hayden was out lbw for eight in the sixth over.

Justin Langer soon followed him back into the pavilion, lbw to Vettori, but when Ricky Ponting clocked up his 24th Test half-century, the outlook seemed better.

But it was a false dawn, as he was caught out by Nathan Astle off the bowling of Martin for 51, leaving the home side on 109-3.

Darren Lehmann was soon caught behind for eight, but this just brought together Martyn and Clarke, who steadied the ship.

Martyn's half-century, his 20th in Test matches, came off just 89 balls and included five fours and a six.

Clarke, who began his Test career with 400 runs in the four Test series against India, provided strong support as Australia looked to have weathered the worst of the storm.

Australia: Justin Langer, Matthew Hayden, Ricky Ponting (capt), Damien Martyn, Darren Lehmann, Michael Clark, Adam Gilchrist (wkt), Shane Warne, Jason Gillespie, Michael Kasprowicz, Glenn McGrath. (12th man: Brett Lee)