Australia crushed England by 36 runs in Barbados on Saturday to leave the defending champions' T20 World Cup hopes in the balance.
Defeat means Jos Buttler's men are still winless after their opening game against Scotland was wrecked by rain.
But Australia, who posted 201-7, are top of Group B with two wins after restricting their fierce rivals to 165-6 in their 20 overs.
Australia's openers raced out of the blocks and the team posted the first score of 200-plus at the tournament even though no batsman reached 40.
Phil Salt and Buttler gave England a solid platform in their reply, reaching 54-0 after six overs before going up a gear, taking 19 off Mitchell Starc's third over.
But spinner Adam Zampa bowled Salt (37) with his first ball to leave England 73-1 in the eighth over and took the prized wicket of Buttler in his next over for 42.
Will Jacks was caught by Starc in the deep off the bowling of Marcus Stoinis for 10 as Australia turned the screw, conceding just 11 runs in three overs.
Moeen Ali took three sixes off a Glenn Maxwell over but Jonny Bairstow went cheaply and Moeen perished for 25, caught by David Warner in the deep as England's situation became increasingly desperate.
England became bogged down against disciplined bowling as the run rate climbed and Zampa finished with impressive figures of 2-28 off his four overs.
Earlier, Buttler chose to bowl at the Kensington Oval but quickly lost control as openers Travis Head and Warner went on the rampage.
Spinner Jacks went for 22 runs in his first over, conceding three sixes as Australia's openers savaged the bowling.
Paceman Mark Wood also conceded 22 runs in his opening over as Australia raced to 55-0 in four overs, relishing a short boundary on one side of the ground.
Moeen made the breakthrough England desperately needed in the fifth over, bowling Warner for 39 and paceman Jofra Archer flattened the stumps of Head (34), leaving Australia 74-2.
Maxwell and Mitchell Marsh brought up the hundred in the 10th over but Australia were reduced to 141-4 after both batsmen departed in quick succession.
Stoinis (30) and Matthew Wade took Australia to the 200 mark, with Archer the pick of the bowlers, taking 1-28 off his four overs.
The top two teams in the group will advance to the Super 8 stage of the competition.
An early exit for England would be a nightmare after their miserable title defence at the 50-over World Cup in India last year.
