Steve Smith has led Australia to a 68-run win over New Zealand in the first one-day international at the SCG.

Australia's captain stood head and shoulders above the rest of the pack, belting 164 — the highest ODI score ever recorded at the SCG — as the hosts set the Black Caps 325 to win, but they were dismissed for 256 in 44.2 overs.

Smith also took a brilliant catch at gully that lit up a fielding effort in which Josh Hazlewood was the chief destroyer, claiming 3-49 from his 10 overs.

New Zealand opener Martin Guptill was one of the few Kiwis to show resistance, compiling a superb innings of 114 in a losing effort.

Colin Munro (49), Neesham (34) and Matt Henry (27) were the only other Black Caps batsmen to pass double figures.

It was a far cry from the trouble Australia found itself in early on Sunday when the third ball of the day sent opener Aaron Finch (1) back to the pavilion.

Other senior team members David Warner (24) and George Bailey (17) fell without great resistance and struggling all-rounder Mitchell Marsh was desperately unlucky to be run out at the non-striker's end by a deflected straight drive.

The unfortunate dismissal left Australia 4-92 to start the 21st over, but Smith then found allies in young Travis Head (52) and wicketkeeper Matthew Wade (38 off 22) as they reached 8-324 from their 50 overs to set up an important win in front of a crowd of 22,502.

The Aussies who came into the series facing their sixth-straight ODI defeat, after a 5-0 whitewash in South Africa, and were at risk of losing their world number one ODI ranking.

Worth 1,000 words ... Colin Munro resisted the Aussie attack, but his bat could not do the same. ( AP: Rick Rycroft )

But when Guptill chipped Adam Zampa (2-66) to substitute fielder Glenn Maxwell at mid-wicket, the game was as good as over.

Hazlewood had some help from fellow pace spearhead Mitchell Starc (1-37) but Pat Cummins' return to the international arena did not make for great viewing.

The one-Test wonder finished with 2-62 from nine overs in his first game for Australia after a 15-month absence due to injury.

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