Fish continually release ammonia (NH3) directly into the water through their gills, urine, and solid waste. Uneaten food and other decaying matter also add ammonia to the water. Ammonia may damage gill membranes and prevent fish from carrying on normal respiration. High levels of ammonia quickly lead to fish death. Even trace amounts stress fish, suppressing their immune system and increasing the likelihood of disease outbreaks and fish loss.
In an established aquarium, the ammonia level should always remain at 0 ppm; any level above 0 can harm fish.
When a new aquarium is started, nitrogen-fixing bacteria colonies must be established for the nitrogen cycle to begin. The "good bacteria" convert fish waste and uneaten food into safe by-products. Water quality changes happen in stages as the cycle happens:
Fish poop! Ammonia spikes.
Enough Nitrosomonas bacteria grow in the filter to convert the ammonia to toxic nitrite. Ammonia decreases and nitrite spikes.
Nitrobacters bacteria convert the toxic nitrites into less toxic nitrates. Nitrite decreases and nitrate spikes.
Once the aquarium reaches this point, it is said to have "cycled."
For additional information, visit this link: The Nitrogen Cycle and "New Tank Syndrome''
Testing Ammonia with the API Freshwater Master Test Kit: