Not smoke, no drinking, is there anyway of avoiding bad breath and dry mouth first thing in the morning?

Absolutely: Odor sources: gut, plaque (germs), pus (infection), cavities (rotting tooth). See your dentist to find the reason for yours. Until then: avoid foods that cause it (garlic, onions, certain spices); floss and brush your teeth (every night); use listerine (essential oils help), and cut out the extra sugars. Many odors come from the tongue, so consider using a tongue scraper to help clean the tongue.

Oral hygiene: Brush, floss, listerine before bedtime. Drink water through the day. Many medications cause dry mouth. Also see your dentist regularly.

Also: Brush the top of your tongue or use a tongue scraper daily. Make sure to see hour Dentist 2x/year to make sure your gums are healthy. Have your General Physician make sure tonsils/sinuses/adenoids are healthy, and that you don't have GERD or diabetes.