The Matildas put in a gallant performance against the undefeated Sweden outfit over night in Tokyo, but the nation was left fuming after a dubious disallowed goal from the referee changed Australia's fate.
Sam Kerr looked to have netted Australia's first goal against the Swedes off a free kick, but the Honduras referee deemed blocking had gone on at the top of the box and whistled the Matildas for a foul.
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But, Kerr proceeded to slot home the delivery with a beautiful one-touch finish.
Fans were left absolutely stunned the referee didn't let play evolve and check for a potential indiscretion with VAR if it was needed.
Though the Matildas finished the first half the stronger team, salt was rubbed into the wound when Sweden opened the scoring soon after half time.
Kerr came close twice with two headed opportunities in the second half, but a gruelling game against Great Britain in the previous tie took its toll in the backend of the match for the Matildas.
Sweden's team stormed the pitch to celebrate making the final, while Australia watched on in disbelief after a shattered Matildas outfit came close to a gold medal playoff.
However, the reaction was strong to the Honduras referee's decision to call a blocking foul even though there appeared minimal contact.
Commentator Brenton Speed said it was was: "Farcical the goal did not stand."
Fans reacted strongly to the disallowed goal, which ultimately was the difference between the two teams.
To make matters worse, one of the Matildas' players of the tournament, Ellie Carpenter was sent off for bringing down a Sweden striker as they were in on goal.
Carpenter will now miss the bronze medal playoff with the US.
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The U.S. women’s national team crashed out of its chase for Olympic gold with a dud of a 1-0 loss to Canada here on Monday, a fitting end to a pursuit in which the most dominant soccer team in the world never hit top gear.
Officially, the Americans will play for bronze on Friday because of a 75th-minute penalty, conceded by Tierna Davidson for a foul on Deanne Rose, awarded after a video review.
Canada’s Jessie Fleming converted it. Backup U.S. goalkeeper Adrianna Franch just barely couldn't save it.
But really, the Americans fell short of the final because they were poor, throughout the Games and here on a sleepy, sticky-hot evening at the Ibaraki Kashima Stadium. They had no rhythm. No composure. No verve.
Instead, there were errant passes. Sloppy touches. Fatigue. Frustration. And a first loss to Canada since 2001.
"Sucks," Megan Rapinoe said, in response to a question about what was going through her head at final whistle.
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