Water will become cloudy as your tank goes through the first stages of the nitrogen cycle. Ammonia this time will probably spike as new good bacteria are looking for a home in your tank....hence the cloudiness appearance. after the bacteria multiply enough to "eat" the ammonia they will then produce nitrites----->which will eventually turn into nitrates.
ammonia and nitrites in an established tank should always read zero on your tests. Both are harmful to some degree. Nitrates 40 ppm and below are not harmful at all.
In other words your tank is still in the first stages of cycling. In a few days to a few weeks after the tank is completely cycled, the cloudiness will disappear.