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Your 700R/4 auto tranny (A4) up/down shifting is controlled internally by the transmission, this includes the OD function. So, in effect, the OD is just another gear within the A4.
Indeed it is ok to leave the shifter in OD position around town or to put it in D position, as you prefer. Sometimes in slow traffic around 40mph or so I manually down shift to D to avoid the "hunting" between gears that can occur.