A sensor system comprising a Micro-Electro-Mechanical Systems (MEMS)-based capacitive floating element shear stress sensor, the associated packaging, and the interface circuitry required for operation as an instrumentation-grade sensing system is disclosed herein. One implementation of the interface circuitry is an analog synchronous modulation/demodulation scheme enabling time-resolved measurements of both mean and dynamic wall shear stress events, where a modulation section couples to the sensor for sensing wall shear stress at the surface of an object in a fluid and generates at least one bias signal from the sensor output signal. In response to the bias signal, a demodulation control circuit adjusts the phase of the bias signal and generates a demodulation control signal from the phase adjusted signal. Consequently, in response to the demodulation control signal, a demodulation section synchronizes the rectification of the sensor output signal, while the phase information is maintained.