I don't know about the auto, but it seems that my car (1994 geo prizm) has DFCO, it seems to happen best when the engine is warmed up, it seems to turn the fuel back on at 1300 rpm. You may have to downshift to use DFCO (I don't know how the automatics behave.)
The 3 speed automatic sucks IMO, you are getting about the same FE my dad's corolla got when it had a 3 speed in it (the 3 speed's gearing is way too short for an economy car.)
My dad swapped in a 4 speed (they weren't ecu controlled on the 6th generation) and gets a bit better FE.