
The home side went into the clash tagged as favourites but came up woefully short during the 33-12 loss, conceding four tries.
'It was very disappointing to be honest,' Gatland said.
'I was very disappointed. Today was probably the most disappointing performance since I've been in charge of Wales.'
Gatland, though, refused to blame injuries for the defeat. Wales lost Shane Williams, Leigh Halfpenny and Matthew Rees all before half-time at the Millennium Stadium.
However, the Wales boss believes that injuries are just part and parcel of the modern game: 'It doesn't help when you're losing quality players and you have to reshuffle things.
'But that's the game as well, that happens in rugby.'
Gethin Jenkins, who skippered the side in the absence of Ryan Jones, was clearly frustrated as Australia blazed into a strong lead and Wales failed to respond.
'We've put a lot of work in over the last three or four weeks and we just let ourselves down in the first half hour,' the Blues prop added.
'Fair play to Australia they made us pay for not being at the races.'
The win saw Australia end their autumn tour on a high after their shocking defeat to Scotland at Murrayfield last time out.
And, Wallabies coach Robbie Deans thinks Wales may have taken his side lightly after that result.
'Maybe they underestimated us,' the former Crusaders coach said.
'Maybe they saw the fact we came up short against Scotland and thought we were there for the taking.'
There was also some redemption for man of the match Matt Giteau, who missed the decisive kick against the Scots.
However, the Wallabies fly-half refused to get carried away with the accolades coming his way after the game.
'It's just satisfying whenever the team does well,' Giteau said.
'Last week was last week, every time I go into a game I have the intention of playing the best football I can for the Wallabies.'
'It was very disappointing to be honest,' Gatland said.
'I was very disappointed. Today was probably the most disappointing performance since I've been in charge of Wales.'
Gatland, though, refused to blame injuries for the defeat. Wales lost Shane Williams, Leigh Halfpenny and Matthew Rees all before half-time at the Millennium Stadium.
However, the Wales boss believes that injuries are just part and parcel of the modern game: 'It doesn't help when you're losing quality players and you have to reshuffle things.
'But that's the game as well, that happens in rugby.'
Gethin Jenkins, who skippered the side in the absence of Ryan Jones, was clearly frustrated as Australia blazed into a strong lead and Wales failed to respond.
'We've put a lot of work in over the last three or four weeks and we just let ourselves down in the first half hour,' the Blues prop added.
'Fair play to Australia they made us pay for not being at the races.'
The win saw Australia end their autumn tour on a high after their shocking defeat to Scotland at Murrayfield last time out.
And, Wallabies coach Robbie Deans thinks Wales may have taken his side lightly after that result.
'Maybe they underestimated us,' the former Crusaders coach said.
'Maybe they saw the fact we came up short against Scotland and thought we were there for the taking.'
There was also some redemption for man of the match Matt Giteau, who missed the decisive kick against the Scots.
However, the Wallabies fly-half refused to get carried away with the accolades coming his way after the game.
'It's just satisfying whenever the team does well,' Giteau said.
'Last week was last week, every time I go into a game I have the intention of playing the best football I can for the Wallabies.'

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