Normally a vehicles' power steering system uses the same fluid as it's automatic transmission. ATF fluid is ok, and what you where smelling was an overheated power steering pump. I always use a brand name power steering fluid because it has additives to help things out in the steering system's hydraulics, personally I use Castrol if I can't find that, Valvoline. Please check for leaks, pay attention to the effort in steering, and listen for grinding and howling sounds. This tells you the fluid level is down and also the pumps pressure vans may be worn out and the pump needs replacement. Take a look at the illustration of such a pump and go to the link below it is a great tutorial on how a power steering pump works. The information is about an older pump but the operating theory is the same.