Drawn against the best third-placed team, the Black Ferns proved no match for the South Americans in their knockout match, with Portia Woodman recording a hat-trick of tries and Michaela Blyde grabbing a double in a 41-0 romp.
New Zealand now face Fiji in the semi-finals, after the Pacific team toppled Olympic silver medallists France. On the other side of the draw, Australia face Ireland for a place in the final.
The NZ men take on Spain in the ninth-place semi-final, with the prospect of playing South Africa for the bowl trophy.
Black Ferns Sevens 17 (Brazier, Hotham & Fitzpatrick tries; Pouri-Lane conversion) Canada 0
Quarter-final - Black Ferns Sevens 41 (Woodman 3, Blyde 2, Pouri-Lane & Kaka tries; Pouri-Lane 2 & Willison conversions) Brazil 0
All Blacks Sevens 14 (Carter & Nicole tries; McGarvey-Black & Ware conversions) Australia 29 (Hutchison 2, Dowling, Toole & Roache tries; Roache 2 conversions)
All Blacks Sevens 28 (Rush 2, Rokolisoa & Solo tries; Rokolisoa 2, Rush & McGarvey-Black conversions) Wales 0