The blast in the southeast of the city is the third significant attack in the Afghan capital in the last three weeks and comes a week after another NATO convoy was hit by a suicide bomber on the road to the airport.
NATO ended its combat mission in the war-torn country in December, maintaining a smaller residual force for training, leaving Afghan troops and police to face their first "fighting season" battling the Taliban on their own.
The street was strewn with rubble and broken glass after the blast, which left a white SUV badly damaged and on fire.
Kabul police spokesman Ebadullah Karimi said the attack in the southeastern part of the city was a suicide car bombing that wounded three people.
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Karimi said two of the wounded were civilians who suffered minor injuries and described the third as a "foreigner", but there was no confirmation of identity or nationality.
"We can confirm an attack on coalition forces occurred in Kabul at approximately 11:30am. We are gathering further information on this incident," a spokesperson for the coalition told AFP adding that no foreign forces were killed in the attack.
A week before that, insurgents launched a brazen attack on the Afghan parliament. Police and soldiers beat back the attack with only two civilians killed,
But the incident highlighted the Taliban's continuing ability to strike even at the heart of the heavily-secured capital.
NATO's combat mission formally ended in December after 13 years, but a small follow-up foreign force named Resolute Support has stayed on to train and support local security forces.