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Sam Warburton's men are now sixth in the world
Wales were in fourth place going into the match against Australia at the weekend behind the southern hemisphere super powers New Zealand, Australia and South Africa.
But with England claiming a draw with South Africa and France gaining revenge on Argentina during the weekend, Wales have slipped down the rankings following their 20-19 loss at the Allianz Stadium in Sydney.
At the end of 2012, the IRB World Rankings will be used to determine the seeding for the 12 sides who have already qualified for the 2015 Rugby World Cup.
The sides will be seeded in three bands, meaning 1-4 in the world (plus 5-8 and 9-12) will be guaranteed separate pools.
IRB World Rankings
1 (1) New Zealand
2 (2) Australia
3 (3) South Africa
4 (5) England
5 (7) France
6 (4) Wales
7 (8) Ireland
8 (6) Argentina
9 (10) Scotland
10 (9) Samoa