Wales high hopes of success in the states were dashed on a disappointing Day 1 that began badly with a 35-14 defeat to Sevens specialists Fiji.
Results did not improve for Wales as they slumped to a 20-5 loss to eventual Cup winners Argentina in the second match of the day - a result that meant they would only contest for the Bowl on Day 2.
A stirring 57-nil win over Mexico completed the first day's play but the win was too little too late for Dai Jenkins' side.
Finishing behind Fiji and Argentina meant Wales went into the Bowl for day two where they faced Japan in the quarter-finals.
Wales outscored Japan by four tries to two to beat them 28-12 and reach the Bowl semi final against Australia.
The Aussies got off to a flier before a late flurry of tries by Wales saw them score three tries in the dying minutes to come within two points but Australia held out for a 26-24 victory.
Australia raced over for four tries before Wales mounted a late rally through Rhys Webb who sped over for two tries and Tal Selley.
Wales were looking to build on the recent success of reaching the Cup quarter-finals of the Wellington leg of the tour where, for the first time in history, Wales came away from a tournament having lowered the colours of Both New Zealand and Fiji.
Their next outing will be at the World Cup in Dubai in the first week in March, and, in an exiting development fans will be able to watch the tournament online. Click here for more information.