Two things.

Firstly: Grey is not swinging the axe at her, he's trying to club her with the handle. That's usually how he opens fights. Stun with a knee to the stomach and a concussive blow to the head, finish with blade at his leisure. If the knee misses, he does NOT strike with the axe, and will instead evade or block with the shield.

Second: Even if he did try a normal swipe, he would miss. He wields his axe with a very high grip, a little more than halfway up the haft. This exchanges reach for power. 

Grey couldn't have possibly hit her with that attack.