UPDATE 1-Soccer-Iraq defy odds to beat Australia

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DUBAI, June 7 (Reuters) - Iraq rekindled memories of their fairytale win in last year's Asian Cup with a stunning 1-0 victory over Australia in their World Cup qualifier on Saturday.

Iraq, who were almost kicked out of the competition two weeks ago after a dispute between their government and world governing body FIFA, upset their more fancied rivals when Emad Rida scored in the 28th minute.

Rida's superbly taken goal gave the Iraqis their first win of the qualifying campaign while handing Australia their first loss and leaving the Asian Group One standings wide open with two rounds to play.

Australia and Qatar head the table with seven points each ahead of Iraq with four and China with three. Only the top two will advance to the next and final stage of qualifying.

"It was a very unlucky goal. We were in complete control and just waiting for the game to open up because Iraq had to win," Australia coach Pim Verbeek said in a televised interview.

"Once they scored, we had to change the way we played but I think my boys did everything they could and we have to give credit to the Iraqi team. They have some very intelligent players."

Neither side was able to create many real clear chances in the stifling humidity but Rida, who hit the bar in Iraq's unlucky 1-0 loss to Australia in Brisbane last week, found the net when he curled a 25 metre kick over the head of Mark Schwarzer into the top of the net.

Schwarzer conceded a similar goal in Australia's loss to Iraq in the pool phase of last year's Asian Cup but Verbeek said he could not attach any blame to his goalkeeper this time.