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England were beaten 61-59 by Australia at the Nations Cup in a repeat of last year's World Cup final.

The Roses overturned a five-goal deficit at half time and led by two going into the final period but could not hold on in a thrilling match.

"We've let ourselves down and gifted that game to them a bit," said head coach Jess Thirlby.

England have beaten 12-time world champions Australia twice since pipping them to Commonwealth gold in 2018.

One of those victories came in the pool stage of last year's World Cup in Cape Town before the Roses missed out on a historic first title to the Diamonds in the final.

England must now beat world number two side New Zealand in their final group match on Saturday, 27 January at Leeds' First Direct Arena to reach the Nations Cup final while Australia will take on Uganda for the first time in their history.

The top two sides will progress to the final on Sunday with the other two nations contesting a third-place play-off match.

Of the 85 times the two nations have met the Diamonds have won 75 matches with one draw and nine England wins.

The world number one side have set the benchmark and shooter Helen Housby, making her 100th Roses appearance, said before Sunday's match at Wembley Arena that her side had "nothing to lose".

England were hesitant in the first half and struggled to find openings, giving the ball away and playing dangerously on the edge of the three-second pass rule.

By contrast, Australia's rapid ball speed and physicality allowed them to quickly take advantage of England's mistakes and saw them stretch out to a five-goal lead in the first quarter, which they maintained going into half-time.

But England - as they did when they beat Australia in the group stages of the World Cup, where they overturned an eight-goal deficit - stuck with the gameplan and turned things around in the third quarter as a partisan crowd roared them on.

Goal keeper Razia Quashie, who has not played for England since 2020, took time to settle but was superb in the third quarter and made crucial interceptions to turn the tide for the Roses.

Imogen Allison was calm in the middle of the court, ensuring good defensive work was rewarded at the other end by Eleanor Cardwell and Housby.

But errors early on in the match cost them at the end as the Diamonds showed the composure and winning mentality that has seen them win every trophy they have contested since 2022 to see out a narrow victory.

"It really hurts because we know we're capable," head coach Thirlby told Sky Sports.

"We've let ourselves down and gifted that game to them a bit because our errors were really poor. Missed shots, really uncharacteristic. In those small moments we let ourselves down.

"I loved the fight [and it was] brilliant we found more turnover against Australia and we rewarded most of that. But missed shots, a few passing errors, those are things we have to keep working on and get rid of from our game."

Earlier on Sunday, world number seven side Uganda came close to causing an upset against New Zealand but eventually succumbed 65-60 to the 2019 World Cup winners.