An axle assembly includes an axle housing assembly including a housing structure having an interior cavity with a sump, a lubricant disposed in the sump having a liquid lubricant level, and a differential mounted in the axle housing assembly for rotation about a first axis. The differential includes a ring gear generating an annular stream of lubricant adjoining the ring gear above the liquid lubricant level during operation of the differential at a rotational speed greater than a predetermined rotational speed. The housing structure includes an interior surface on which a deflector is coupled. The deflector extends into the interior cavity and has a first face having an impingement portion and a first edge adjacent the impingement portion. The impingement portion extends into the stream and deflects a portion of the stream towards the first edge. The first edge disperses the portion of the stream into the cavity.