Tom & Katie were in Sydney to attend a memorial service for Kerry Packer, a late friend of Tom’s. Hello! Magazine reports:

All smiles and tender caresses, Tom Cruise and Katie Holmes seemed determined to scotch recent rumours that their relationship was in trouble during a recent trip Down Under.
The Tinseltown twosome, who were in Sydney to attend a memorial service for late Australian businessman Kerry Packer, were snapped hugging warmly aboard a yacht owned by the media tycoon’s son Jamie Packer, who’s a friend of the Mission Impossible star.
And Tom clearly remains caught up in the excitement of impending fatherhood, repeatedly patting his fiancée’s bump and grinning broadly as she wrapped her arms around him.
The 27-year-old mum-to-be, who is expecting her first child in April, was dressed for the Australian summer heat in a stylish chemise worn over a simple vest. And while her burgeoning bump meant the patterned top had ridden up, the former Dawson’s Creek actress was making sure no-one got a sneak peek at her tummy by keeping the undergarment well pulled down.
According to reports, Katie had not initially intended to make the trip, but the publication stateside of articles speculating on the couple’s living arrangements – claiming they slept in separate rooms – persuaded her to change her mind. [You go, girl! Kick some gossip-reporters-butt!! Good for you! I’d do the same.]
Describing the rumours as “100 per cent false”, a spokesperson for the pair stated: “Mr Cruise and Ms Holmes are still engaged and are moving forward with their wedding plans, as well as planning for the arrival of their child. Despite malicious fallacies put forth, the couple is looking forward to a long and happy life together as a family.”

Pics:

ET Online reports that Tom’s attorney, Bertram Fields, that Tom plans to sit down with him to discuss any possible legal action. [Good for you, Tom!]

More on Packer you can read at the site of AccessHollywood (BTW: While being at that site, don’t forget to check out their various photo galleries and video’s!). AP also has a slideshow of the event, with some pics of Tom & Katie.