Writer observed dodgy place in Austrian capital should be avoided (6)
I believe the answer is:
pencil
'writer' is the definition.
(something which writes)
I can't explain the remainder of the clue.
Can you help me to learn more?
(Other definitions for pencil that I've seen before include "Graphite stick" , "Writing tool" , "Graphite writer" , "Wooden writer" , "Writing instrument" .)