Australia drop one spot to No.37 in the latest FIFA rankings after losing 3-2 to Romania in a friendly in Spain.
The Socceroos remain the No.2-ranked team in Asia, behind Japan.
Japan dropped seven spots in the rankings despite defeating Latvia 3-0 in a friendly.
Australia's highest ranking remains No.14, achieved in September 2009.
England, meanwhile, rose two places to No.4 in the FIFA rankings after defeating Brazil 2-1 in a friendly at Wembley.
Roy Hodgson's men enjoyed a memorable night at Wembley and now look up at just three teams on the list;
The latest rankings, released on the back of the Africa Cup of Nations, see
Japan coach Alberto Zaccheroni warned against complacency on Thursday as he recalled Keisuke Honda and Yuto Nagatomo after an injury spell for the upcoming World Cup qualifier against Australia.