The gold, and the reports of an exotic kingdom filled with it, caught the public's attention more than anything else. The Spanish were already familiar with the concept of New World natives from conquering the Caribbean islands, so they had no problem believing there were more; what was astonishing was the level of civilization and sophistication shown by this culture compared to the island natives. Juan Diaz wrote an account of Juan de Grijalva's exploration of the Mexican coast and encounters with the natives which had taken place the year before Cortez set out from Cuba; this was widely published in 1519 and raised interest in Cortez's activities. The Europeans were taken with the idea of a faraway exotic paradise full of gold and jewels.
As part of his efforts to shore up his political position, Cortez sent ships back to Spain carrying letters, gold and other Totonac and Aztec treasures, and also several live natives. These were displayed at court in 1519 and seen by many Spaniards. King Charles was preoccupied with continental affairs but evidently took an interest in the natives, referring to them as chiefs rather than slaves, and requesting that they be given warm clothing and good horses for their journey to court.
On 3 March, after mass (it being a Sunday), the court was able to admire for the first time both the marvellous works of art which Cortés had sent from Mexico and the Totonac Indians who had accompanied those objects. The treasure had been brought up in carefully made wooden boxes from Seville by Luis Veret, keeper of the royal jewels. They were displayed in the Convent of Santa Clara. So were five Totonac Indians, three men and two girls, all now elegantly dressed in bright colors.
The consensus, apparently, was that the natives were ugly but the artifacts beautiful and the craftsmanship superb. No record exists of what the natives thought of the Spanish.
Source: Hugh Thomas: Conquest: Cortes, Montezuma, and the Fall of Old Mexico, 1994.