A bird nested in southern eucalypt (4)

I believe the answer is:

erne

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'a bird' is the definition.
(erne is a kind of bird)

'in southern eucalypt' is the wordplay.
'in' indicates a hidden word.
'ERNE' is hidden within 'southern eucalypt'.

'nested' is the link.
This may not be right. It may belong to another bit of the clue.

Can you help me to learn more?

(Other definitions for erne that I've seen before include "A high-flier" , "Light (a flame)" , "Seabird" , "flyer in the main" , "'Sea-eagle, river and lough (4)'" .)

I've seen this clue in the Sydney Morning Herald.

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