A binaural sound reproduction system, and methods of using the binaural sound reproduction system to dynamically re-center a frame of reference for a virtual sound source, are described. The binaural sound reproduction system may include a head-mounted device, e.g., headphones, having a device sensor to provide device orientation data corresponding to a direction of the head-mounted device. The system may use the orientation data to determine whether the head-mounted device has moved over an angle within a range of movement, and may adjust an audio output to render the virtual sound source in an adjusted source direction based on the range of movement. Other embodiments are also described and claimed.