No you should not use palings as cladding. Palings are from cheaper, external cuts of wood
Here is a picture of before and after for when I did the same on my fibro shed- except I used used palings.
Remember to foil insulate to handle moister, use h3 treated pine decking for your batons (cheapest solution) and nail them through the fibro onto the internal studs. Then screw the palings to the batons!
Welcome to the Bunnings Workshop community @matted86.
It's fantastic to have you join us and many thanks for jumping straight into the discussion. Let me mention @Hansi so they are alerted to your advice.
That's a great example of using fence pailings to clad a building and very sound advice on the foil to stop moisture entering also. We look forward to seeing what other projects you have going on around your home and garden and trust you'll get loads of inspiration for them from other members. Please don't hesitate to post whenever you need assistance with a project or have something to share.
Don't use fence palings on a house mate. There's a reason they're called "fence palings". There's a product you can paint roll on old fibro which gives it a rendered finish look. I think it's called weather tex or something. Looks a million bucks. Give it a crack and send some pics when you're done. You're welcome ❤💚