US NAHB Index shows positive sign

US NAHB Housing Market Index data released yeasterday recorded another cycle high, whereas empire manufacturing survey posted a very weak result. The Aug empire survey was all around disappointing with a big miss on the headline (-14.92 vs. est. 4.50) and details that were just as soft.

RBC Capital Markets finds a weak correlation exist between this survey and the ISM index though, and for manufacturing sentiment the bank put more value on the Philly Fed survey (out this Thurs). The Aug NAHB sentiment index was in line with expectations for another cycle high (at 61), and with all housing data so constructive recently, Q3 is setting up to be another solid quarter for the sector. The other US news overnight is that Robert Kaplan has been announced as the new Dallas Fed President (beginning Sep. 8th), although he will not be a voter until 2017, notes RBC Capital Markets.