His seam bowling has played a key role in the Thunder's emergence as a BBL contender but that alone wasn't enough to force his way back into the Australia team.
The ODI squad named on Monday is for the first three games of the series. But given the focus on the future from selectors Watson is unlikely to be picked for the final two games.
Unless his form dramatically improves he will also struggle to force his way into Australia's T20 side for three matches later this summer and for the World Cup in March and April.
Last week Watson maintained he still had designs on heading to India for the tournament.
"There's no doubt the Twenty20 World Cup I've had in the past, and during the (Indian Premier League), I've had quite a bit of success over there," he said.
"I know the conditions very well. I just need to get back to my best, and I know what I can bring to the team when I'm there.
"The hitting at the moment is a little bit off but I've been working on a few things just to get my batting back to where I know it can get to," he said.
"I feel like the ball's coming out well in my bowling. I'm one innings away from being able to contribute really well with the bat as well.
Joel Paris has been nominated as key to Australia's next generation of fast bowlers after the West Australian left-armer was named alongside Kane Richardson and Scott Boland in the squad.
Usman Khawaja and Joe Burns joined Watson in being big names left out of the squad, while veteran batsmen Shaun Marsh and George Bailey were included.
An Australian under-19 representative Paris, 23, impressed in the one-day domestic competition earlier this summer and has taken that form into the Big Bash League.
Boland, 26, has been a part of the Australian squad for the second and Third Tests against West Indies, while Richardson, 24, has been considered an emerging limited overs candidate for several summers now.
Boland and Paris are yet to represent Australia, while Richardson has played eight ODIs and two international Twenty20 fixtures.
Australia's Chairman of Selectors Rod Marsh said the trio had worked hard to earn their call-ups to the national side.
"Scott has continued to impress the selection panel, having bowled very well for Victoria this year. He certainly deserves this chance at the top level," Marsh said.
"Joel is an exciting young left-arm bowler who swings the ball well and has bowled beautifully in the Big Bash League for the Perth Scorchers. He has had very good figures in short-form cricket and we really want him to make the most of this opportunity.
"Kane has had a taste of cricket at the international level and although that has been interrupted on occasions through injury we think he is ready to perform consistently for Australia."
The squad covers the first three games of the five-match series - in Perth, Brisbane and Melbourne. The series starts at the WACA on January 12.
Australia 13-man ODI squad: Steve Smith (capt), David Warner, George Bailey, Scott Boland, Josh Hazlewood, James Faulkner, Aaron Finch, Mitch Marsh, Shaun Marsh, Glenn Maxwell, Kane Richardson, Joel Paris, Matthew Wade.
- AAP
