A system includes first and second magnetic sense elements for producing first and second output signals, respectively, in response to an external magnetic field along a sensing axis parallel to a plane of the first sense element, a magnetization direction of the second element being rotated in the plane relative to a magnetization direction of the first element. The second output signal differs from the first output signal in dependency to a magnetic interference field along a non-sensing axis of the first magnetic field. A processing circuit, receives the first and second output signals, identifies from a relationship between the first and second output signals an influence of the magnetic interference field on the first output signal, and applies a correction factor to the first output signal to produce a resultant output signal in which the influence of the magnetic interference field is substantially removed.