The Silver Ferns have fallen 59-57 to the Australian Diamonds in a tight Quad Series match in Cape Town this morning.
Australia remains the only unbeaten side in the tournament which also includes hosts South Africa and the England Roses.
Trailing by five during the latter part of the final quarter, the Silver Ferns late surge was not enough to prevent the defeat.
Leading by one goal at half-time the Ferns made a promising start before Australia reeled in the gap to one goal at half-time.
New Zealand coach Dame Noeline Taurua mixed up her combinations with shooter Grace Nweke a constant presence at goal shoot, first partnered by Ameliaranne Ekenasio and then by Maia Wilson.
Nweke kept her steady composure in goal while pressured by the rangy Diamonds' defenders. Nweke's rivalry with ferocious Australian goal keeper Courtney Bruce is developing in its intensity.
Australia's goal attack and player-of-the-match Steph Wood marshalled the Diamonds' attack, combining seamlessly with goal shooter Cara Koenen.
New Zealand defender Karin Burger marked Wood from goal defence as Burger shows flashes of her best in her return from a foot injury.
Shooting was accurate from both teams with Australia's 92 percent success rate superior to New Zealand's 89 percent.
Earlier the Norma Plummer-coached South African side held England to a 46-46 draw.
South African defender Karla Pretorius was back to her best in an impressive return to the sport following the birth of her first child.
The Quad Series is being used by teams as a warm-up for this year's World Cup in July and August at the same location.
New Zealand next play England on Wednesday.
Shooting Stats
Silver Ferns
Grace Nweke 42/44 (95.5%)
Ameliaranne Ekenasio 7/9 (77.8%)
Maia Wilson 8/11 (72.7%)
Australia
Cara Koenen 38/40 (95%)
Steph Wood 21/24 (87.5%)