Yes, Xatu's power will stack in the way you describe.
Now, here's an extended answer for a different format:
The catch in 2 vs 2 battle is that you might have one active asleep and the other confused. If you have two Xatu on the bench, then you could apply both those conditions to one of your opponents active Pokemon, but those conditions replace each other and both could not be active at once, so the latter would take effect.