Australia suffer shock loss to America, set for tricky knockout rounds

The 2016 champions will now play Fiji in a sudden-death quarter-final but the bigger challenge awaits in the semi-final.

Should Australia defeat Fiji, they will likely take on tournament favourites New Zealand in the semi-final.

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The two teams have developed a fierce rivalry since Australia prevailed in the Rio gold-medal match, the Kiwis getting the better of their opponents on most occasions.

The stakes were clearly high in Australia's clash with America, both teams desperate to finish on top of the group.

That saw the match develop into a tight, gritty affair with the two sides committed in defence.

The nerves were high, Australia making a number of uncharacteristic errors throughout the first half, Wollongong's Emma Tonegato missing a golden chance to score.

Eventually they settled down, co-captain Sharni Williams putting her side up 7-0 with a brilliant line.

America spent the first minute of the second half on the attack, the team threatening to break through on a number of occasions.

Australia held firm before they won a penalty and promptly ran 100 metres to extend the advantage to 12.

The lead would not last long, USA making the most of some poor defence to pull within five points.

Moments later and America were in front after Australia turned the ball over in their own half.

USA did a masterful job controlling possession to close out the game, Australia unable to get their hands on the ball.