1. A method of processing an audio input signal, the method comprising: receiving an audio input signal; deriving using at least one processor spatial cue information from a frequency-domain representation of the audio input signal, wherein the spatial cue information is generated by determining at least one direction vector for an audio event from the frequency-domain representation; downmixing the audio input signal; and synthesizing a set of output signals from the downmixed signal, wherein the set of output signals is synthesized by deriving pairwise-panning weights to recreate the appropriate perceived direction indicated by the spatial cue information; deriving omnidirectional panning weights that result in a non-directional percept; and cross-fading between the pairwise-panning weights and omnidirectional panning weights to achieve the correct spatial location.