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If your manual says ATF then it is designed to run on Dexron III. The later style fluid is synthetic and you can either buy it from Volvo or run Pentosin CHF 11S. Back in the day when we had problems with steering chatter one of the official Volvo fixes was to run their special green P/S fluid, which just happens to be CHF 11S. BMW has been running the stuff for years and it works quite well.
The synthetic trans fluid that they use is compatabile with Mobil 3309, but if I understand your question correctly that is not what you were asking.
Mark
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