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Sounds fungal to me. I got thrush (fungus/yeast/whatever you want to call it) on my nipples while breastfeeding. They cracked and oosed clear fluid from the cracks - not the milk I was producing. They recommended that I ...
1. put Clortrimazole cream on my nipples at least three times a day
2. walk around without my bra or anything on top if I could to let them be exposed to the air and dry, and
3. use Lanolin (or lanisoh) as often as I wanted.
4. use a mild soap for washing.
I was rid of it in about a week and I was nursing that whole while which meant that in theory it could have healed faster otherwise.
The rest of the advice here all sounds great, including the tea tree oil and arnica. I believe there's another fluid that you can apply called blue gentian - it will stain your clothes though if you get it on them. Read up on it. It's a natural antifungal.
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