Two killed in Baghdad car bomb attack

A car bomb targeting a US military convoy exploded near the Australian Embassy in Baghdad, killing at least two people, police and the Iraqi Interior Ministry said.

Police at the scene said the morning explosion killed two Iraqi bystanders and injured several others. The incident took place several hundred metres away from the Australian Embassy.

Interior Ministry spokesman Col. Adnan Abdul-Rahman said the bomb was targeting the convoy as it was driving through the neighbourhood of Karrada and Jadiriyah .

The US military had no immediate comment and it was unknown whether there were any American casualties. Soldiers sealed off the area.

A huge cloud of smoke was seen rising over the western bank of the Tigris river. US helicopters were seen flying over the area.

Last week, the Australian government announced that the embassy would be moved early next year from its current location to the heavily fortified Green Zone, which houses the US and Iraqi leadership.

A car bomb blast on October 17 hit a café close to the Australian Embassy, killing six people.

No Australians were hurt in that blast, which authorities believe was aimed at an Iraqi police convoy.