Addressing an Australian-American Leadership Dialogue dinner in Perth late Saturday, Gillard said the world had felt the effects of the global financial crisis and was now watching as the US faced "a great test".

"We watch with a sincere desire to see your mighty country's economy regain its momentum," Gillard told an audience of Australian and American political, finance and military figures, including World Bank President Robert Zoellick.

"I do have faith in the ability of the United States to get its economic house in order even if, too often for comfort, it takes a crisis to force decisive action."

Gillard said that regaining its economic strength was vital to America holding its global influence, including in the rising Asia-Pacific region.

"This battle is not just about the economy and jobs. US global leadership and its influence in a rapidly changing Asia Pacific depend on a continued economic strength," she said.

"Ultimately, it is economic power which underpins strategic power."

Global markets went into a panic last week on concerns about the eurozone's sovereign debt issues and the historic US debt downgrade by Standard and Poor's which came after American lawmakers narrowly averted a disastrous debt default.

Noting the upcoming 60th anniversary of Australia's military alliance with the US, the ANZUS Treaty, and centre-left Labour Party Prime Minister Gillard said Washington's engagement with the region was crucial.

And she welcomed US President's Barack Obama's emphasis on Asia as the world's strategic and economic weight shifted to the region.

"I believe the balance of US commitments -- which sees the US maintain its presence in Northeast Asia while enhancing its presence in Southeast Asia and the Indian Ocean -- is the right one," she said.

Copyright AFP (Agence France-Presse), 2011