An audio processor (200) for a hearing device has a noise estimator (100), an adaptive noise canceller (110), and a dynamic range compressor (120) to provide a gain according to a signal strength of an input signal. A signal strength processor (130) determines a signal strength dependent noise cancellation parameter, and the adaptive noise canceller provides noise cancellation of the input signal according to an estimated noise from the noise estimator, and according to the signal strength dependent noise cancellation parameter, so as to provide less noise cancellation when the input signal has higher signal strength than when the input signal has a lower signal strength. This helps retain the desirable environment or ambient type noise, present when the signal strength is higher, while providing more cancellation of undesirable circuit type noise when there is low input signal strength.
