New Zealand skipper Stephen Fleming branded his team "inconsistent" and "timid" after Wednesday's Champions Trophy semi-final defeat to Australia.

Australia scored 240 for nine and reduced New Zealand to 35 for 6 before vice-captain Daniel Vettori (79) and Jacob Oram (43) put on a fighting 103-run seventh wicket stand.

The Kiwis were eventually bowled out for 206 to lose by 34 runs.

"What we need is more consistent batting performances across the board. That's why Australia do so well. If someone doesn't do well, someone else does it," Fleming told reporters.

"We were out-skilled at the top of the order. To be 35 for 6 and get over 200, you wouldn't find any other team doing that. We just backed our skills and didn't give Australia a chance to knock us over."

Fleming also said his bowlers failed to cash in after reducing Australia to 4 for 2 in the third over. He urged his players to raise their game in big tournaments if they want to become a major one-day side.

"We've got to earn more international respect and performances like these don't help," he said. "We got to the semi-finals and played OK cricket but we've got to move forward.

"This tournament is one where we were a bit timid towards the final stages."

He did however praise strike bowlers Kyle Mills, who took four for 38, and Shane Bond.

Bond struggled early on before the injury-prone bowler returned to bag two for 55.

"He's copped a bit of slack at home about how he keeps getting injured, but we know how dangerous a player he can be when he gets a run of games together," Fleming said.

"Kyle has taken wickets for us at the top. It's one of the reasons we got this far."