Liam Hemsworth in Australia, Miley Cyrus Source Says "Everything Is Fine Between Them"

Insider tells us Miley was in the studio Friday working on a track with Mike Mill and is "having a great time"; meanwhile, Liam causes a splash with the sheilas just by going outside

By Natalie Finn, Baker Machado, Melanie Bromley Mar 09, 2013 5:57 AMTags

Liam Hemsworth may be Down Under, but that doesn't mean things are all over.

While Miley Cyrus has been furiously playing whack-a-rumor via Twitter regarding the state of her engagement, it turns out Hemsworth has been in his native Australia this week.

Which, of course, could easily be taken as a sign that there's trouble in paradise.

A source close to Miley tells E! News, however, that "she is not listening to what everyone is saying about her and Liam. Everything is fine between them, as far as I know."

The 20-year-old also happens to be really enjoying herself right now, the insider adds, explaining that Miley was just in the recording studio today working on a new track with Mike Mill.

"Her new music is going to be so amazing, she can't wait for everyone to hear it," the source says.

So, Miley's keeping busy while—surprise, surprise—Liam apparently can't help but cause a frenzy wherever he goes.

An eyewitness tells E! News that a group of girls spotted the Hunger Games: Catching Fire hunk strolling along trendy Jonson Street in New South Wales' Byron Bay and started screaming his name and running toward him.

Dressed casually in a t-shirt and board shorts, Liam ducked into a clothing store, according to the onlooker, but ultimately had no choice to go back outside, where the shrieking sheilas awaited.

"He looked a bit angry with all the girls around him," the witness said. Meanwhile, it sounds like Liam is keeping familiar company in Australia—brother Chris Hemsworth was also spotted in Byron Bay today with wife Elsa Pataky and their baby daughter, India Rose.

The brothers and their respective ladies vacationed all together in Costa Rica in January.