While fourth-ranked England were semi-finalists at the last two World Cups, and won the European Championship on home soil last year, 10th-ranked Australia have never previously been past the quarter-finals at a major global tournament.
"If you look at rankings they're favourites, if you look at where their players play, they have starting players in top clubs in top leagues all over the world," Gustavsson told reporters on Tuesday.
"So if you look at all that and you look at resources, financially, obviously they are massive favourites going into this game.
Another sellout crowd of around the 75,000 mark is expected at Stadium Australia for Wednesday's match and most will be backing the home team.
"You need to live in every single moment because that's how small the margins are in the semi-final or final."
Persons:
Sam Kerr, Dan Peled, Tony Gustavsson, Gustavsson, Sam, Swede, Nick Mulvenney, Peter Rutherford
Organizations:
Soccer Football, FIFA, Brisbane, REUTERS, England, Australia, U.S, Thomson
Locations:
New Zealand, Australia, France, Brisbane, SYDNEY, Sweden