Despite Wade's fall at 64 and Watson at 21, Australia can look to post a huge total to have Sri Lanka sweat it out later in the day.
Australian captain Michael Clarke won the toss and elected to bat in the first of the best-of-three finals against Sri Lanka in the ODI tri-series in Brisbane on Sunday.
Clarke is back to lead the Australians after recovering from a back problem, while Clint McKay has made way for Brett Lee among the bowlers.
For Sri Lanka Farveez Maharoof is back from his injury, along with Dammika Prasad and Upul Tharanga. Thisara Perera and Angelo Mathews -- both out injured -- are missing from the line-up for Sunday.
Teams:
Australia: Michael Clarke (c), David Warner, Matthew Wade, Shane Watson, Mike Hussey, David Hussey, Daniel Christian, Brett Lee, James Pattinson, Xavier Doherty, Ben Hilfenhaus
Sri Lanka: Mahela Jayawardene (c), Tillakaratne Dilshan, Kumar Sangakkara, Dinesh Chandimal, Lahiru Thirimanne, Upul Tharanga, Farveez Maharoof, Nuwan Kulasekara, Dammika Prasad, Lasith Malinga, Rangana Herath.