"The United States will play a larger and long term role in shaping this region", he said.
"The United States is a Pacific country and we are here to stay."
"In the Asia-Pacific in the 21st century, the United States is all in."
Mr Obama said he has directed his national security team to make the region a top priority - fiscal reductions will not come at the expense of the Asia-Pacific, he said.
He spoke of continuing the US's effort to building a 'cooperative' relationship with China, and said all nations should welcome China's rise.
The US was interested in a 'secure and peaceful Asia.'
Politicians of all parties stood up to welcome Mr Obama, who shook MPs' hands as he entered, including Greens MP Adam Bandt and Independent MP Tony Windsor.
Mr Obama lauded the relationship between the US and Australia, "two of the world's oldest democracies, and two of the world's oldest friends."
'LUCKY COUNTRY'
He thanked the Australian people for their hospitality, and indigenous Australians, keepers of one of the world's 'oldest continuous cultures.'
"This is a lucky country and today I feel lucky to be here", Mr Obama said.
"In each other's story we see so much of ourselves. Ancestors who crossed vast oceans-some by choice, some in chains.
"Settlers who pushed west across sweeping plains. Dreamers who toiled with hearts and hands to lay railroads and build cities."
"No matter who you are or what you look like everyone deserves a fair chance, a fair go", Mr Obama said.
He said progress does not come without sacrifices, adding that he was 'deeply moved' on visiting the Australian War Memorial in Canberra this morning.
WARTIME SACRIFICE
He commended the ANZUS treaty, saying Americans will not forget either that or the shared losses fighting Al-Qaeda.
He saluted Australia's military role in Afghanistan, 'outside of NATO the largest contributor of troops to this vital mission', and honoured the sacrifices of the 32 Australian 'patriots' killed in the country.
'I can say with confidence the alliance between the US and Australia has never been stronger."
Mr Obama spoke of a shift for the US, which is 'turning our attention to the Pacific region' after two costly wars over the last decade.
"Make no mistake, the tide of war is receding", he said, citing a new focus on education, the economy, science and research.
"Our economic strength at home is the foundation of our leadership in the world, including in the Asia-Pacific."
"The United States is and always will be a Pacific nation."
Mr Obama moved on to fighting climate change and boosting clean energy, saying he knew the issue was 'not without controversy' in Australia, or the US.
The final area where the US is leading, Mr Obama said, is in supporting the rights of individuals around the world.
"These are not American rights or Western rights or Australian rights, these are human rights", he said. "God bless Australia, and God bless America, and God bless the friendship between our two peoples", Mr Obama finished off.
WARM WELCOME
Speaker Harry Jenkins said it was a "significant occasion in the history of the House."
Introducing the President, Prime Minister Julia Gillard recalled the shared history and values of the two nations.
Opposition Leader Tony Abbott followed the Prime Minister in giving platitudes to America, citing its role in securing democracy via military campaigns in recent years.
Mr Abbott hope American primacy would continue.
"No one should find out the hard way what a shrunken America might be", he said.
