The owner's manual says ATF for the power steering fluid for this car. I did some research and it seems varying opinions exists
Most Volvo mechanics seems to say the manual is wrong and they use a low foam synthetic hydraulic fliud called CHF-11S (cheaptest I found is $15+ from fcpgroton.com). This fluid is green color when poured from the bottle. Appears clear when you see it on the level stick on the PS fluid reservoir cap. And is brownish if you flush it out. But it is definitely never bright reddish like ATF.
ATF seems to have been used for older power steering systems. So some people think ATF is okay since the manual says so. ATF is red color.
Just about everyone say mixing these 2 is a bad idea.
I unfortunately put in ATF per Volvo's manual and eventually my steering rack seal leaked on the passenger side. I think it is leaking on the driver side too but there is much more distance between the seal and the tie rod boot where wetness might indicate a leak. I can't say definitively that adding ATF is the cause of the failing seal (100k miles on the car+steering rack). But I suspect the wrong fluid might have something to do with it.
ATF is not good for the P2 steering racks. Even when my fluids are full with ATF, the PS pump eventually started making noises. After I flushed the ATF out of my PS system and added CHF-11S, most of the noise disappeared. So ATF probably isn't good for the PS pump either.
Before you add ATF to your power steering reservoir, call and check with your local Volvo dealer to be sure.
Volvo seems to have "fixed" the manual for 2005+, you can see their 2004 and 2005 online versions for yourself
http://new.volvocars.com/ownersdocs/2004/2004_V70/04v70_08b.htm#pg139
http://new.volvocars.com/ownersdocs/2005/2005_V70/05v70_08b.htm#pg154
My XC70 would pull right at any speed. Pulling slightly at low speeds and heavier at highway speeds.
Had an alignment done and didn't fix it. Noticed my rear A-ARM bushings were torn and not sure if that was the cause. Finally took the car in for a rotation and they rebalanced the tires. Bingo, the pulling is gone.
Got a rebuilt and will be putting this in soon. See here for why I needed to replace this. More to come.
If you have recently replaced your steering rack or changed the tie rods. Your toe alignment might be off. Actually, there are numerous ways to take care during dis/reassembly that will get you pretty close to the original. I won't mention them here because of differences on which part you take off and reassemble. There is no way you can eye ball it so we need to measure somethings. A quick search on the internet will provide numerous do it at home procedures to get toe alignments that is "good enough to safely drive to alignment shop". I improvised the following simple way to do this.
Now you are good enough to drive to alignment shop to get a precise alignment.