Australia 4 for 257 (Smith 77*, Labuschagne 63, de Grandhomme 2-48) v New Zealand

Steven Smith came through his personal battle against the short ball, to finish Boxing Day within sight of another MCG hundred, as Australia took the honours on 4 for 257 after being put into bat on a well-grassed surface that provided a better contest than in the last couple of years.

Marnus Labuschagne, who was at the crease in the first over after Joe Burns fell for a first-ball duck, appeared to be setting himself for a fourth hundred in four Tests but was cut-off for 63 after an innings that had included a fair degree of fortune. David Warner had got himself set during the morning session, when conditions were at their trickiest, but fell a few overs before lunch, and just six balls after taking a blow to the chest off Trent Boult. Matthew Wade's stay was far from convincing as he was worked over by the contrasting approaches of Neil Wagner and Colin de Grandhomme.

New Zealand, playing an MCG Boxing Day Test for the first time in 32 years, needed more than four wickets to justify Kane Williamson's decision to bowl first on the much talked-about wicket which had a considerable covering of grass and offered a little bit of assistance through the day although at no great pace.

However, the masses of travelling support - upward of 15,000 who had filled flights across the Tasman as part of a crowd that tipped over 80,000 - were given an early moment to savour when the returning Boult had bent one back to uproot Burns' middle stump with the fourth ball of the day.

ALSO READ: New Zealand merit more MCG invites after record crowd

When Wagner removed Warner - superbly caught by Tim Southee at second slip - Smith was immediately greeted by his nemesis from Perth and New Zealand wasted no time in packing the leg-side field with catchers and resuming the short-ball approach. He had spoken before the match of looking forward to a return to the red ball, coupled with a formidable MCG record where he had scored four centuries in his last four Tests.

In the short period before lunch, Smith was not overly impressed as umpire Nigel Llong twice called dead ball when he was struck but was ruled not to be taking evasive action and was denied the leg byes. Smith had worked extensively between Tests to come up with a solution and, while not always pretty, he came through the examination and he also scored off the short delivery by making sure he got well over the ball to keep it down.

For a large part of the afternoon session it looked as though Smith and Labuschagne were starting to take control of the match as they battled hard against some demanding bowling. New Zealand had a chance to run out Labuschagne on 27 when there was a mix-up with Smith but Williamson could not hit the stumps. He brought up his half-century, his fifth fifty-plus score in a row, with an edge to third man off Boult but just as the prospect of a fourth hundred in four matches was looming he was bowled off his elbow as he attempted to leave a delivery from de Grandhomme, who was rewarded for a probing nine-over spell of nibbling medium pace.

De Grandhomme did an excellent job throughout the day but the shackles were broken somewhat when 17 came off Mitchell Santner's third over with Labuschagne pulling a short ball for six and Smith lofting one straight into the sightscreen. Santner was only used for seven overs in the day and struggled to provide control, but did make a couple of deliveries turn and bounce more than enough to suggest Nathan Lyon will have a big say.

Wade had been given a working over in the brief period he batted before tea and his innings never really got any more convincing although he survived long enough to add a fourth-wicket stand of 72 with Smith. He was predictably bombarded by Wagner's short bowling, but he had just as many problems with de Grandhomme who teased him outside off, unsure of whether to dominate or defend.

He was beaten repeatedly on the drive, saw an edge fall just short of Ross Taylor at first slip (although replays showed it was a missed no-ball) and almost dragged on before de Grandhomme finally had him caught behind pushing at a delivery well wide of off stump.

That wicket came six overs before the second new ball which gave New Zealand a vital opportunity to try and claw back some ground but Travis Head, who retained his place when Australia opted against playing five bowlers, and Smith remained secure. This had been a day a long time in the making for New Zealand and they had a few moments to remember, but not enough to be in a position of strength.