The irony of the song, which was about a crazy girl, playing in a gay club made Terrence laugh. But it suited him just fine, honestly. He took his cues from the beat, not intentionally moving in a latin style, but he was thoroughly enjoying himself.
They were attracting some attention, he noticed, but he didn't care. The people in this club could either want to be them or want to fuck them, but as far as he was concerned, they were getting neither. He wasn't assuming that Z felt the same, just letting him do his own thing.