A year on from the Black Caps' heartache defeat to Australia in the 50-over World Cup final, New Zealand exacted revenge over their neighbours who were left to rue their decision to go with spin.
Australia had appeared well set to chase down New Zealand's modest total of 142 for eight, needing a relatively straightforward 43 runs off the last five overs with six wickets in hand.
But tight bowling from rookie spinners Mitchell Santner and Ish Sodhi put on the brakes before a devastating penultimate over from McClenaghan who finished with figures of three for 17.
He conceded just three runs in his last six balls, taking the wickets of Mitchell Marsh and Ashton Agar after earlier snaring Shane Watson.
It left Australia needing 19 runs in their last over bowled by Corey Anderson who just about held his nerve, conceding 10 runs.
"Nice to perform like that but it was as a collective," said McClenaghan after being named man-of-the-match.
"The spinners were fantastic and got us back in the game. It's nice to show some teams we can play in these conditions."
Australian skipper Steve Smith agreed Sodhi and Santner had been the difference.
"Obviously their spinners bowled extremely well, they ran through the middle," said Smith.
We didn't respond well, we lost wickets in clumps which you can't do in T20 cricket when you are chasing a total of 140."
McClenaghan was a surprise replacement for Nathan McCullum, one of the heroes of New Zealand's dramatic victory over the hosts India on Tuesday.
But skipper Kane Williamson's switch was vindicated in spectacular style while Australia came to regret picking two inexperienced spin bowlers in Agar and Adam Zampa.
- Agar's game to forget -
Agar had a game to forget, carted for three sixes in his one and only over. His first two balls were full tosses, dispatched over the ropes by Martin Guptill, who top-scored with 39 off 27 balls.
Guptill and Williamson put on 61 in the first seven overs but the Black Caps' hopes of putting on a score close to 200 soon subsided.
But poor shot selection and tight bowling from the veteran Watson and allrounders Glenn Maxwell and James Faulkner slowed their charge.
Guptill was the first to go after racing to 39 off 27 balls, caught on the boundary by Maxwell off the bowling of Faulkner as he tried to go for another six at the beginning of the eighth over.
Williamson and Anderson were then out in quick succession, both taken after they miscued expansive strokes.
New Zealand never recovered their momentum and no batsman looked settled on what proved to be a slow pitch.
Watson's first three overs yielded just 11 runs and he took the key wicket of Ross Taylor in his finale, one ball after being hit for six by the former Kiwi captain.
Usman Khawaja and Watson got the Australian innings off to brisk start, putting on 44 before Watson fell.
Khawaja stroked six fours in an attractive innings of 38 before he was run out just as he looked poised to post a big score.
Australia seemed comfortably placed at the mid-way point in their innings, with 66 on the board.
But David Warner perished in the first ball of the 11th over, holing out at deep mid-wicket after mistiming a pull shot off Santner.
Sodhi conceded just 14 runs in his four overs while Santner took two for 30, figures slightly tarnished by two sixes off his last three balls.
New Zealand's second win makes them firm favourites to reach the semi-finals of the tournament but is a big blow to Australia's hopes of winning a trophy that has so far proven elusive.
Source: AFP
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