In an interview with Sydney radio station 2GB, Murdoch, whose Fox News station strongly backed the invasion of Iraq, said that Bush would "walk the election".
"The economy's doing extremely well and there is an international crisis. You've got to understand, America was attacked. 9/11 changed America -- it was a big moment in history," Murdoch said.
The media mogul dismissed suggestions that the current trouble from hardline Islamic insurgents in Iraq would hurt the President in his battle with Democratic contender John Kerry.
"There has been tremendous progress in Iraq," Murdoch said. "Most of Iraq is doing extremely well."
He hit out at the media for its coverage of the troubles in Iraq and said that it was guilty of misrepresenting the continuing violence in the country, which he said was isolated.
He went on to praise the President's efforts in fighting terror and when asked if Bush had done enough, Murdoch said he had done everything within his power.
"Oh yeah. I mean, they deployed all their resources, everything," Murdoch said.
The News Corp chairman, who was in Australia for the announcement that News Corp is shifting its headquarters and primary listings to New York, also praised Australian Prime Minister John Howard for standing with America and sending troops to Iraq.
Australia sent around 2,000 troops to Iraq to take part in the coalition during the invasion, including Australian SAS special forces, and still has around 850 troops in the country.
"This country's got no alternative, it must stand with America," Murdoch said.
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