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All-rounder Watson, on the ground where he played for Hampshire, took three wickets for 36 runs in eight overs as Australia looked to go 3-0 up in the seven-match series.
England were indebted to a ninth-wicket stand of 40 in 41 deliveries between Tim Bresnan (31 not out off 37 balls) and Ryan Sidebottom, out off the last ball for 24 to Watson.
Only England captain Andrew Strauss, who made 63, and his Middlesex team-mate Eoin Morgan, whose 43 was the former Ireland international’s best score for his adopted country in four matches at this level, managed more than Bresnan.
SCORE BOARD
England
Strauss c Clarke b Hauritz 63
Bopara c Hopes b Bracken 10
Prior c Hopes b Johnson 0
Shah lbw Johnson 8
Collingwood c Bracken b Watson 28
Morgan c Johnson b Lee 43
Wright c sub b Hopes 9
Bresnan (not out) 31
Swann lbw Watson 3
Sidebottom c White b Watson 24
Extras: (LB-1, W-4, NB-4) 9
Total: (nine wickets; 50 overs) 228
Fall of wickets: 1-41, 2-41, 3-62, 4-98, 5-132, 6-147, 7-183, 8-188, 9-228. Bowling: Lee 9-1-58-1, Bracken 10-0-36-1, Johnson 10-1-39-2, Hopes 7-0-34-1, Hauritz 6-0-24-1, Watson 8-0-36-3.