One embodiment relates to a sensing system that includes a magnetic encoder wheel having alternating pole magnetic domains along a circumference thereof. The magnetic encoder wheel is configured to rotate about a first axis. The sensing system further includes a magnetic field sensing element in spatial relationship with the magnetic encoder wheel that is oriented to sense magnetic field components extending generally in a direction parallel to a second axis that is perpendicular to the first axis. The sensing system also includes a magnetic flux influencing element configured to influence magnetic field components associated with the alternating pole magnetic domains of the magnetic encoder to reduce magnetic field components associated with the first axis.