England lost their Quad Series opener as Australia came from behind to seal a 61-55 victory in Cape Town.
The Roses led 18-14 after the first quarter, with Eleanor Cardwell making 16 of 18 goal attempts.
But Australia cut the lead to just one at half-time and then took control in the third quarter to move 48-41 ahead.
England tried to spark a late comeback and outscored the Diamonds by one in the final quarter, but the world number one side were able to hold out.
Earlier, New Zealand dominated hosts South Africa in a 61-41 victory.
England face South Africa on Sunday, with New Zealand playing Australia.
Cardwell, who shot 93% overall, made an impressive return to the Roses after missing the recent 2-1 series win over Jamaica to recover from injury.
After a strong first quarter, she scored late in the second to put her side 32-31 up.
But Australia’s introduction of Kiera Austin in the third quarter proved pivotal as the Commonwealth Games champions started to find their fluency in attack.
Jess Thirlby’s Roses also made several errors going forward, allowing Australia to move into a decisive lead.
The Diamonds’ defence held firm in the fourth quarter and made a couple of key interceptions, ensuring England’s late run was ultimately in vain.
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